H.R. 5311 · 114th Congress
Corporate Governance Reform and Transparency Act of 2016
- Stage
- Reported from committee
- Sponsor
- Sean Duffy
- Introduced
- 2016-05-24
- Latest action
- 2016-09-28 · Reported (Amended) by the Committee on Financial Services. H. Rept. 114-798.
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.