Corporate Governance Reform and Transparency Act of 2016

Bill: 114-hr-5311
Sponsor: Rep. Duffy, Sean P. [R-WI-7]
Introduced: 2016-05-24 in the House
Policy area: Finance and Financial Sector
Subjects: 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)

Summary:
action_date: 2016-05-24
text: 

Corporate Governance Reform and Transparency Act of 2016

 
This bill amends the Securities Exchange Act of 1934 to require the registration of proxy advisory firms and make it unlawful for an unregistered proxy advisory firm to make use of the mails or any means or instrumentality of interstate commerce to provide proxy voting research, analysis, or recommendations to any client.
 
&quot;Proxy advisory firm&quot; means any person registered under this bill who is engaged in the business of providing proxy voting research, analysis, or recommendations to clients, which conduct constitutes a solicitation, except to the extent that the person is exempted by Securities and Exchange Commission (SEC) rules and regulations from requirements that otherwise apply to persons engaged in a solicitation.
 
The bill prescribes both registration and termination procedures.
 
The SEC shall report annually on its Internet website about proxy advisory firm registration applicants, actions taken on the applications, and specified related matters.

action_date: 2016-09-28
text: 

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.


Legislative actions:
action_date: 2016-09-28
text: Placed on the Union Calendar, Calendar No. 621.
action_date: 2016-09-28
text: Reported (Amended) by the Committee on Financial Services. H. Rept. 114-798.
action_date: 2016-09-28
text: Reported (Amended) by the Committee on Financial Services. H. Rept. 114-798.
action_date: 2016-06-16
text: Ordered to be Reported (Amended) by the Yeas and Nays: 41 - 18.
action_date: 2016-06-16
text: Committee Consideration and Mark-up Session Held.
action_date: 2016-06-15
text: Committee Consideration and Mark-up Session Held.
action_date: 2016-05-24
text: Referred to the House Committee on Financial Services.
action_date: 2016-05-24
text: Introduced in House
action_date: 2016-05-24
text: Introduced in House
action_date: 2016-05-17
text: Hearings Held by the Subcommittee on Capital Markets and Government Sponsored Enterprises Prior to Introduction and Referral.