Overview
- President Donald Trump signed an Executive Order instructing federal regulators to scrutinize the proxy advising industry that influences shareholder voting at major U.S. companies.
- The order directs the SEC to review all proxy adviser rules, including Rule 14a-8 on shareholder proposals, consider revisions tied to DEI and ESG policies, and enforce anti-fraud provisions on voting recommendations.
- It tasks the SEC with assessing whether proxy advisers should register as investment advisers, requiring greater disclosure of methodologies and conflicts, and examining potential coordination among investment advisers.
- The FTC, in consultation with the Attorney General, is ordered to review state antitrust probes and investigate potential unfair methods of competition or deceptive practices by proxy advisers.
- The Labor Department is directed to reevaluate ERISA guidance, consider treating proxy advisers as investment advice fiduciaries, strengthen fiduciary standards, and enhance transparency for retirement plans’ use of proxy advice.