,i  #aai? ,,congress  #a/ ,session  ,h4 
,r4 #cdjb  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,may #ad1 #bjbe,mr4   
,l\d]milk introduc$ ! foll[+ bill2 :i* 0
 ref]r$ to ! ,committee on ,f9ancial    
,s]vices  ,a ,,bill  ,to am5d !         
,securities ,ex*ange ,act ( #aicd to    
require c]ta9 disclosures by            
in/itutional inve/m5t manag]s 9         
connection ) proxy advisory firms1 & =  
o!r purposes4  #a4 ,duties ( inve/m5t   
advisors1 asset manag]s1 & p5sion funds 
,section #ac7;f7 ( ! ,securities        
,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4    
#ghm7f77 is am5d$ by add+ at ! end !    
foll[+3  7#g7 ,disclosures by           
in/itutional inve/m5t manag]s 9         
connection ) proxy advisory firms  7,a7 
,9 g5]al ,e in/itutional inve/m5t manag]
 :i* uses ! mails1 or any means or      
in/rum5tality ( int]/ate comm]ce 9 !    
c\rse ( its bus9ess z an in/itutional   
inve/m5t manag]1 :i* engages a proxy    
advisory firm1 & :i* ex]cises vot+ p[] )
 respect to acc\nts hold+ equity        

securities ( a class describ$ 9         
subsection 7d77#a7 or o!rwise becomes or
 is deem$ to become a b5eficial own] (  
any security ( a class describ$ 9       
subsection 7d77#a7 ^u ! pur*ase or sale 
( a security-bas$ swap t ! ,commission  
may def9e by rule1 %all file an annual  
report ) ! ,commission conta9+--  7i7 an
 explanation ( h[ ! in/itutional        
inve/m5t manag] vot$ ) respect to ea*   
%>ehold] proposal2  7ii7 ! p]c5tage (   
votes ca/ on %>ehold] proposals t 7     
consi/5t ) proxy advisory firm          
recomm5dations1 = ea* proxy advisory    
firm reta9$ by ! in/itutional inve/m5t  
manag]2  7iii7 an explanation (-- 7,i7  
h[ ! in/itutional inve/m5t manag] took  
into consid]ation proxy advisory firm   
recomm5dations 9 mak+ vot+ decisions1   
includ+ ! degree to :i* ! in/itutional  
inve/m5t manag] us$ ^? recomm5dations 9 
mak+ vot+ decisions2  7,,ii7 h[ (t5 !   
in/itutional inve/m5t manag] vot$       
consi/5t ) a recomm5dation made by a    
proxy advisory firm1 express$ z a       

p]c5tage2  7,,iii7 h[ su* votes are     
reconcil$ ) ! fiduci>y duty ( !         
in/itutional inve/m5t manag] to vote 9 !
 be/ economic int]e/s ( %>ehold]s2      
7,,iv7 h[ frequ5tly votes 7 *ang$ :5 an 
error occurr$ or due to new in=mation f 
issu]s2 &  7,v7 ! degree to :i* inve/m5t
 pr(essionals ( ! in/itutional inve/m5t 
manag] 7 involv$ 9 proxy vot+ decisions2
 &  7iv7 a c]tification t ! vot+        
decisions ( ! in/itutional inve/m5t     
manag] 7 bas$ solely on ! be/ economic  
int]e/ ( ! %>ehold]s on behalf ( :om !  
in/itutional inve/m5t manag] holds %>es4
  7,b7 ,requirem5ts = l>g] in/itutional 
inve/m5t manag]s ,e in/itutional        
inve/m5t manag] describ$ 9 subp>agraph  
7,a7 t has assets "u managem5t ) an     
aggregate fair m>ket value on ! la/     
trad+ day 9 any ( ! prec$+ twelve mon?s 
( at lea/ #ajj1jjj1jjj1jjj %all--  7i7 9
 any mat]ials provid$ to cu/om]s &      
relat$ to cu/om]s vot+ _! %>es1 cl>ify t
 %>ehold]s are n requir$ to vote on e   
proposal2  7ii7 ) respect to ea*        

%>ehold] proposal = :i* ! in/itutional  
inve/m5t manag] votes 7o!r ?an votes    
consi/5t ) ! recomm5dation ( a bo>d (   
directors compos$ ( a majority (        
indep5d5t directors7 p]=m an economic   
analysis be=e mak+ su* vote1 to det]m9e 
t ! vote is 9 ! be/ economic int]e/ ( ! 
%>ehold]s on behalf ( :om ! in/itutional
 inve/m5t manag] holds %>es2 &  7iii7   
include ea* economic analysis requir$ "u
 clause 7ii7 9 ! annual report requir$  
"u subp>agraph 7,a74  7,c7 ,def9itions  
,9 ?is p>agraph3  7i7 ,be/ economic     
int]e/ ,! t]m be/ economic int]e/ means 
decisions t seek to maximize inve/m5t   
returns ov] a "t horizon consi/5t ) !   
inve/m5t objectives & risk managem5t    
pr(ile ( ! fund 9 :i* %>ehold]s are     
inve/$4  7ii7 ,proxy advisory firm ,!   
t]m proxy advisory firm--  7,i7 means   
any p]son :o is prim>ily engag$ 9 !     
bus9ess ( provid+ proxy vot+ advice1    
rese>*1 analysis1 rat+s1 or             
recomm5dations to cli5ts1 :i* conduct   
con/itutes a solicitation )9 ! mean+ (  

section #ad2 &  7,,ii7 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