H.R. 4648 · 118th Congress · House

To amend the Securities Exchange Act of 1934 to provide for duties of certain investment advisors, asset managers, and pension funds with respect to voting on shareholder proposals, and for other purposes.

Active· Referred to the House Committee on Financial Services.
Introduced
Jul 14, 23
Passed House
Pending
Passed Senate
Pending
Sent to President
Pending
Signed into Law
Pending

Executive Summary

This bill requires certain institutional investment managers that use proxy advisory firms to disclose information related to voting on shareholder proposals. (Proxy advisory firms provide voting services and advice to institutional investors in public companies for proposals presented at shareholder meetings.)

Generally, institutional investment managers must report annually (1) how the manager voted on each shareholder proposal, (2) the percentage of votes cast in accordance with proxy advisory firm recommendations, and (3) explanations such as how votes are reconciled with fiduciary duties. Managers must also certify that votes were based solely on the best economic interest of the shareholders.

In addition, large institutional investment managers must (1) inform customers that shareholders are not required to vote on every proposal; (2) on certain votes, determine through an economic analysis the vote that is in the best economic interest of shareholders; and (3) report any such analysis annually.  

Action Timeline

3
  1. JUL 14, 2023IntroReferral

    Introduced in House

  2. JUL 14, 2023IntroReferral

    Introduced in House

  3. JUL 14, 2023IntroReferral

    Referred to the House Committee on Financial Services.

Committees

1

Financial Services Committee

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Referred: Jul 14, 2023

Active