Protecting Americans’ Savings Act
Sponsored By: Representative Nunn, Zachary [R-IA-3]
Introduced
Summary
Prohibit robovoting tied to proxy advisory recommendations. This bill would require the SEC to write rules banning automatic votes that simply follow a proxy advisory firm's recommendations without independent review. It would also restrict who can cast votes for institutional investors and protect people from being forced to vote in proxy matters except where a fiduciary duty or SEC Rule 206(4)-6 requires it.
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- Institutional investors: Would have to keep voting decisions in-house or with a registered investment adviser or a broker-dealer that owes a fiduciary or best-interest duty. This limits outsourcing to unregistered or non-fiduciary vendors.
- Proxy advisory firms: Clients could no longer have votes automatically cast on a firm’s platform or in line with its recommendations without independent analysis.
- Individual shareholders and employees: Would not be required to cast proxy or consent solicitation votes unless bound by a fiduciary duty or the specific SEC rule cited.
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Bill Overview
Analyzed Economic Effects
1 provisions identified: 0 benefits, 0 costs, 1 mixed.
Limits on institutional proxy voting
This bill would direct the SEC to issue final rules banning "robovoting" for votes tied to proxy or consent solicitation materials. Robovoting is automatically voting in line with a proxy advisory firm's recommendations or its electronic voting platform without independent review and analysis. The bill would bar institutional investors from outsourcing voting decisions except to an investment adviser or to a broker-dealer that is registered (or exempt) and that owes a fiduciary or best‑interest duty to the institutional investor. It would also prohibit forcing anyone to cast proxy votes unless they are obligated by fiduciary duty or by SEC Rule 206(4)-6.
Sponsors & CoSponsors
Sponsor
Nunn, Zachary [R-IA-3]
IA • R
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov