US House of Representatives moves to regulate proxy-advisory firms

A measure requiring greater transparency from proxy-advisory firms was passed Wednesday by the House of Representatives along party lines by a 238-182 vote. There is no Senate counterpart currently.

Rep. Sean Duffy, R-Wis., sponsor of H.R. 4015, the Corporate Governance Reform and Transparency Act of 2017, said in a statement that while proxy-advisory firms play an important role in advising clients, “they are susceptible to conflicts of interest.” Mr. Duffy said that along with more accountability and transparency from the firms, the bill if passed would create more competition in the proxy-advisory firm industry.

Read the article here >>>>