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119-hr-4098119th CongressWALLET
Stopping Proxy Advisor Racketeering Act
Sponsored By: Representative Fitzgerald, Scott [R-WI-5]
Introduced
Summary
Stops proxy advisory firms from issuing voting advice when they have conflicts of interest. This bill would bar specified conflict practices and give the Securities and Exchange Commission authority to penalize firms that violate the rules.
Show full summary
- Proxy advisory firms: Would be unlawful to provide proxy voting advice if the firm has a conflict, including four listed practices: offering consulting services to a registrant, changing recommendations based on subscriptions, providing advice while offering stewardship or engagement services to related parties, or joining an organization that supports a related shareholder proposal.
- Registrants and shareholders: Names issuers (registrants) in the conflict rules and restricts when shareholders can receive proxy voting recommendations to cases where the advisory firm lacks the specified conflicts.
- Enforcement and scope: Authorizes the Securities and Exchange Commission to bring proceedings and impose administrative civil penalties under the standards of section 21B and procedures of section 21C. The bill also defines key terms such as consulting services, proxy advisory firm, proxy voting advice, and registrant to guide enforcement.
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Bill Overview
Analyzed Economic Effects
1 provisions identified: 0 benefits, 0 costs, 1 mixed.
New conflict rules for proxy voting firms
This bill would set conflict-of-interest rules for proxy voting firms. Firms would be barred from giving advice when they have listed conflicts, like consulting for the company, changing methods based on who pays, advising another party on the same matter, or joining a group backing the proposal. The SEC would be able to fine firms after notice and a hearing, with penalty amounts set under section 21B standards. The bill would define who counts as a proxy advisory firm, what proxy voting advice is, who the registrant is, and what consulting services include.
Sponsors & CoSponsors
Sponsor
Fitzgerald, Scott [R-WI-5]
WI • R
Cosponsors
Rep. Wied, Tony [R-WI-8]
WI • R
Sponsored 7/2/2025
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov