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Increased Oversight for Proxy Advisory Firms: Mandatory Registration and Inspections

This Act amends the Investment Advisers Act of 1940 to require proxy advisory firms to register as investment advisers. It mandates the Securities and Exchange Commission (SEC) to conduct periodic inspections of these firms, focusing on policies regarding conflicts of interest and whether firms knowingly make false statements or omit material facts. The bill excludes firms with annual gross receipts of not more than $5 million from the definition, unless they choose to register.
Key points
Proxy advisory firms must register as investment advisers under the Investment Advisers Act of 1940.
The SEC will conduct periodic inspections regarding false statements, omitted material facts, and conflicts of interest.
The Commission is required to report on whether existing rules sufficiently protect investors and their ability to make informed decisions.
Firms with annual gross receipts of not more than $5 million are generally excluded from the definition of a proxy advisory firm.
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Introduced
Citizen Poll
No votes cast
Additional Information
Print number: 119_S_3055
Sponsor: Sen. Reed, Jack [D-RI]
Process start date: 2025-10-23
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Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Corporate Governance Fairness Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 119_S_3055.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2025-10-23.

What are the main provisions?

Key points include:

  • Proxy advisory firms must register as investment advisers under the Investment Advisers Act of 1940.
  • The SEC will conduct periodic inspections regarding false statements, omitted material facts, and conflicts of interest.
  • The Commission is required to report on whether existing rules sufficiently protect investors and their ability to make informed decisions.
  • Firms with annual gross receipts of not more than $5 million are generally excluded from the definition of a proxy advisory firm.
What is the specific legal status?

The current status is Introduced.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Sen. Reed, Jack [D-RI].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-31.

CATEGORIES

Economy Courts and Law