Corporate Governance Reform and Transparency Act of 2016

1/11/2023, 1:33 PM

Corporate Governance Reform and Transparency Act of 2016

(Sec. 3) This bill amends the Securities Exchange Act of 1934 to: (1) require a proxy advisory firm to register with the Securities and Exchange Commission (SEC); and (2) prohibit an unregistered proxy advisory firm from using interstate commerce to provide proxy-voting research, analysis, or recommendations to any client.

With respect to such firms, the bill: (1) establishes procedures for both registration and termination of registration; (2) requires each firm to employ an ombudsman, designate a compliance officer, and file specified documents with the SEC; and (3) prohibits unfair, coercive, or abusive practices.

(Sec. 4) The SEC shall report annually on its website regarding registration applications and related matters.

Congress
114
Number
HR - 5311
Introduced on
2016-05-24
# Amendments
0
Sponsors
+5
Cosponsors
+5

Variations and Revisions

9/28/2016
Text
PDF
XML

Status of Legislation

Bill Introduced
Introduced to House
House to Vote
Introduced to Senate
Senate to Vote

Purpose and Summary

Corporate Governance Reform and Transparency Act of 2016

(Sec. 3) This bill amends the Securities Exchange Act of 1934 to: (1) require a proxy advisory firm to register with the Securities and Exchange Commission (SEC); and (2) prohibit an unregistered proxy advisory firm from using interstate commerce to provide proxy-voting research, analysis, or recommendations to any client.

With respect to such firms, the bill: (1) establishes procedures for both registration and termination of registration; (2) requires each firm to employ an ombudsman, designate a compliance officer, and file specified documents with the SEC; and (3) prohibits unfair, coercive, or abusive practices.

(Sec. 4) The SEC shall report annually on its website regarding registration applications and related matters.

Alternative Names
Official Title as IntroducedTo improve the quality of proxy advisory firms for the protection of investors and the U.S. economy, and in the public interest, by fostering accountability, transparency, responsiveness, and competition in the proxy advisory firm industry.
Policy Areas
Finance and Financial Sector
Potential Impact
Administrative law and regulatory procedures•
Business ethics•
Corporate finance and management•
Financial services and investments•
Government information and archives•
Licensing and registrations•
Securities•
Securities and Exchange Commission (SEC)

Comments

Related

Member:  John C. Carney, Jr.
Member:  Sean P. Duffy
Bill Update Alert:  Financial CHOICE Act of 2016

Recent Activity

Latest Summary3/31/2017

Corporate Governance Reform and Transparency Act of 2016

(Sec. 3) This bill amends the Securities Exchange Act of 1934 to: (1) require a proxy advisory firm to register with the Securities and Exchange Commission (SEC); and (2)...

Latest Action9/28/2016
Placed on the Union Calendar, Calendar No. 621.