,i  #aah? ,,congress  #a/ ,session  ,h4 
,r4 #dffb  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,july #ad1 #bjbc,mrs4 
,wagn] introduc$ ! foll[+ bill2 :i* 0   
ref]r$ to ! ,committee on ,f9ancial     
,s]vices  ,a ,,bill  ,to require !      
,securities & ,ex*ange ,commission to   
conduct a /udy ( c]ta9 issues ) respect 
to %>ehold] proposals1 proxy advisory   
firms1 & ! proxy process1 & = o!r       
purposes4  #a4 ,%ort title ,?is ,act may
 be cit$ z ! ,corporate ,gov]nance      
,exam9ation ,act4  #b4 ,/udy ( c]ta9    
issues ) respect to %>ehold] proposals1 
proxy advisory firms1 & ! proxy process 
,section #d7;j7 ( ! ,securities ,ex*ange
 ,act ( #aicd 7#ae ,u4,s4,c4 #gh;d7j77  
is am5d$ by add+ at ! end ! foll[+3     
7#aj7 ,/udy ( c]ta9 issues ) respect to 
%>ehold] proposals1 proxy advisory      
firms1 & ! proxy process  7,a7 ,9 g5]al 
,n lat] ?an #ahj days aft] ! date ( !   
enactm5t ( ?is p>agraph1 & e #e ye>s    
!reaft]1 ! ,commission %all conduct a   
compreh5sive /udy on %>ehold] proposals1

 proxy advisory firms1 & ! proxy        
process4  7,b7 ,scope ( /udy ,! /udies  
requir$ "u subp>agraph 7,a7 %all cov]-- 
7i7 ! previ\s #aj ye>s1 ) respect to !  
initial /udy2 &  7ii7 ! previ\s #e ye>s1
 ) respect to ea* o!r /udy4  7,c7       
,cont5ts ,ea* /udy requir$ "u           
subp>agraph 7,a7 %all address ! foll[+  
issues3 7i7 ,! f9ancial & o!r inc5tives 
& obligations ( all gr\ps involv$ 9 !   
proxy process4  7ii7 ,a consid]ation (  
:e!r f9ancial & o!r inc5tives h creat$ a
 process t no long] s]ves ! economic    
int]e/s ( long-t]m retail inve/ors4     
7iii7 ,an analysis ( :e!r regulations & 
f9ancial inc5tives h creat$ & protect$ !
 outsiz$ influ5ce ( proxy advisors or a 
duopoly 9 proxy advice1 & if s1 :at are 
! b5efits & co/s ( t outsiz$ influ5ce or
 duopoly4  7iv7 ,! co/s incurr$ by      
issu]s 9 respond+ to politically-1      
environm5tally-1 or socially-motivat$   
%>ehold] proposals4  7v7 ,an assessm5t1 
includ+ a co/-b5efit analysis1 ( !      
adequacy ( ! curr5t submission ?re%olds 

9 ,rule #ad;a-#h 7#ag ,c4,f4,r4         
#bdj4ad;a-#h7 to ensure t %>ehold]      
propon5ts h demon/rat$ a mean+ful       
economic /ake 9 a company1 :i* is       
appropriate to effectively s]ve m>kets &
 %>ehold]s at l>ge4  7vi7 ,an exam9ation
 ( ! ext5t to :i* ! politicization ( !  
%>ehold] proposal process is increas+ ! 
op]at+ co/s ( public companies4  7vii7  
,an analysis ( ! impact t %>ehold]      
proposals h on disc\rag+ private        
companies f go+ public4  7viii7 ,an     
evaluation ( ! risk t %>ehold] proposals
 may contribute to ! balkanization ( !  
,u4,s4 economy ov] "t4  7ix7 ,a ?or\gh  
assessm5t ( ! economic analysis1 if any1
 conduct$ by proxy advisory firms &     
in/itutional %>ehold]s :5 recomm5d+ or  
vot+ 9 favor ( %>ehold] proposals4  7x7 
,a review ( ! ext5t to :i* in/itutional 
inve/ors1 :o owe fiduci>y duties1 rely  
on proxy advisory firm recomm5dations4  
7xi7 ,an assessm5t ( :e!r1 9 light ( _! 
significant influ5ce on corporate       
actions & vote outcomes1 proxy advisors 

are subject to suffici5t & effective    
regulation to ensure t _! policies &    
recomm5dations are accurate1 free (     
conflicts1 & b5efit ! economic be/      
int]e/ ( %>ehold]s at l>ge4  7,d7       
,report ,at ! completion ( ea* /udy     
requir$ "u subp>agraph 7,a7 !           
,commission %all issue a report to !    
,committee on ,bank+1 ,h\s+1 & ,urban   
,affairs ( ! ,s5ate & ! ,committee on   
,f9ancial ,s]vices ( ! ,h\se (          
,repres5tatives t includes ! results ( !
 /udy4  7,e7 ,proxy advisory firm def9$ 
,9 ?is p>agraph1 ! t]m proxy advisory   
firm-- 7i7 means any p]son :o is        
prim>ily engag$ 9 ! bus9ess ( provid+   
proxy vot+ advice1 rese>*1 analysis1    
rat+s1 or recomm5dations to cli5ts1 :i* 
conduct con/itutes a solicitation )9 !  
mean+ ( section #ad ( ! ,securities     
,ex*ange ,act ( #aicd2 &  7ii7 does n   
include any p]son t is exempt "u law or 
regulation f ! requirem5ts o!rwise      
applicable to p]sons engag$ 9 su* a     
solicitation4  4