“To amend the Securities Exchange Act of 1934 to establish certain requirements related to proxy voting, and for other purposes.”
No CRS summary available for this bill.
This section amends the Securities Exchange Act of 1934 to address proxy voting practices by (1) directing the Securities and Exchange Commission (SEC) to issue final rules prohibiting robovoting (i.e., automatically voting proxies consistent with a proxy advisory firm's recommendations without independent review); (2) prohibiting institutional investors from outsourcing voting decisions on proxy or consent solicitation materials to any person other than a registered or exempt investment adviser or broker-dealer with a fiduciary or best interest duty to the investor; and (3) prohibiting requirements that any person cast such votes unless obligated by fiduciary duty or SEC Rule 206(4)–6 (i.e., the proxy voting rule for investment advisers).