H.R. 5116 · 116th Congress

Corporate Governance Reform and Transparency Act of 2019

Stage
In committee
Introduced
2019-11-15
Latest action
2019-11-15 · Introduced in House

Summary

Corporate Governance Reform and Transparency Act of 2019

This bill requires a proxy advisory firm to register with the Securities and Exchange Commission (SEC) and prohibits an unregistered proxy advisory firm from using interstate commerce to provide proxy-voting research, analysis, or recommendations to any client.

With respect to these 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.

The SEC must report annually on its website regarding registration applications and related matters.