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HR8265119th CongressWALLET

Empowering Shareholders Act of 2026

Sponsored By: Representative Huizenga, Bill [R-MI-4]

Introduced

Summary

New rules for how passively managed funds cast proxy votes would require advisers to use one of four specific voting methods when they control a fund's proxy. The bill also creates a liability safe harbor, a foreign issuer exemption, and disclosure and delivery rules, and it would take effect one year after enactment.

Show full summary
  • Investment advisers would have to vote covered securities held by passively managed funds by following one of four options: follow the beneficial owner's instructions, follow the issuer board's recommendations, abstain while trying to be present for a quorum, or use Commission rules to mirror other shareholders' elections. Routine matters are excluded from this requirement.
  • Beneficial owners would get a form to pick a published voting policy and at least 5 business days to return it. Advisers may deliver these materials electronically via website or mobile app.
  • Advisers would be shielded from federal and state liability if they follow the listed voting methods. Foreign private issuers could be exempt if the adviser's voting policy for them is fully disclosed to investors.

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 0 benefits, 0 costs, 1 mixed.

New proxy rules for passive funds

This bill would change how proxies are voted for passively managed funds. If enacted, an adviser with voting authority for a covered security would have to use one of four options for each non‑routine vote: follow the beneficial owner's instructions (including a selected published voting policy), follow the issuer board's recommendation, abstain while trying to count for quorum, or instruct tabulators to mirror other shareholders under SEC rules. The bill would require advisers to give each voting person a form and at least 5 business days to return it, and advisers could deliver materials electronically. It would define which funds and securities are covered (including a 60% asset test for passive funds), exempt routine matters and certain foreign private issuers, create a safe harbor for advisers who follow these options, and take effect 1 year after enactment.

Sponsors & CoSponsors

Sponsor

Huizenga, Bill [R-MI-4]

MI • R

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

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