Stopping Proxy Advisor Racketeering Act

[Congressional Bills 119th Congress] [From the U.S. Government Publishing Office] [H.R. 4098 Introduced in House (IH)] <DOC> 119th CONGRESS 1st Session H. R. 4098 To amend the Securities Exchange Act of 1934 to prohibit certain acts by proxy advisory firms, and for other purposes. _______________________________________________________________________ IN THE HOUSE OF REPRESENTATIVES June 24, 2025 Mr. Fitzgerald introduced the following bill; which was referred to the Committee on Financial Services _______________________________________________________________________ A BILL To amend the Securities Exchange Act of 1934 to prohibit certain acts by proxy advisory firms, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the ``Stopping Proxy Advisor Racketeering Act''. SEC. 2. CONDUCT OF PROXY ADVISORY FIRMS. The Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.) is amended by inserting after section 14B the following: ``SEC. 14C. CONDUCT OF PROXY ADVISORY FIRMS. ``(a) Prohibited Conduct.--It shall be unlawful for a proxy advisory firm to provide proxy voting advice if the proxy advisory firm possesses a conflict of interest, direct or indirect, including by-- ``(1) providing consulting services offered directly or indirectly through an affiliate to a registrant; ``(2) modifying a voting recommendation or otherwise departing from the adopted systematic procedures and methodologies of the proxy advisory firm or affiliate for the provision of proxy voting advice based on whether a registrant, or affiliate of the registrant, subscribes or will subscribe to the services or products of the proxy advisory firm or any affiliate of the proxy advisory firm; ``(3) providing proxy voting advice during any period of time when the proxy advisory firm or any affiliate of the proxy advisory firm is providing stewardship or engagement services to