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To amend the Securities Exchange Act of 1934 to require certain disclosures by institutional investment managers in connection with proxy advisory firms, and for other purposes.

5/28/2025, 12:56 PM

Summary of Bill HR 3402

H.R. 3402, introduced in the 119th Congress on May 14, 2025, aims to amend the Securities Exchange Act of 1934. The bill seeks to mandate specific disclosures by institutional investment managers concerning proxy advisory firms.

Congressional Summary of HR 3402

This bill requires certain institutional investment managers that use proxy advisory firms to disclose information related to voting on shareholder proposals. (Proxy advisory firms provide voting services and advice to institutional investors in public companies for proposals presented at shareholder meetings.)

Generally, institutional investment managers must report annually (1) how the manager voted on each shareholder proposal, (2) the percentage of votes cast in accordance with proxy advisory firm recommendations, and (3) explanations such as how votes are reconciled with fiduciary duties. Managers must also certify that votes were based solely on the best economic interest of the shareholders.

In addition, large institutional investment managers must (1) inform customers that shareholders are not required to vote on every proposal; (2) on certain votes, determine through an economic analysis the vote that is in the best economic interest of shareholders; and (3) report any such analysis annually.  

Current Status of Bill HR 3402

Bill HR 3402 is currently in the status of Bill Introduced since May 14, 2025. Bill HR 3402 was introduced during Congress 119 and was introduced to the House on May 14, 2025.  Bill HR 3402's most recent activity was Referred to the House Committee on Financial Services. as of May 14, 2025

Bipartisan Support of Bill HR 3402

Total Number of Sponsors
1
Democrat Sponsors
0
Republican Sponsors
1
Unaffiliated Sponsors
0
Total Number of Cosponsors
0
Democrat Cosponsors
0
Republican Cosponsors
0
Unaffiliated Cosponsors
0

Policy Area and Potential Impact of Bill HR 3402

Primary Policy Focus

Finance and Financial Sector

Alternate Title(s) of Bill HR 3402

To amend the Securities Exchange Act of 1934 to require certain disclosures by institutional investment managers in connection with proxy advisory firms, and for other purposes.
To amend the Securities Exchange Act of 1934 to require certain disclosures by institutional investment managers in connection with proxy advisory firms, and for other purposes.

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