,i  #aai? ,,congress  #a/ ,session  ,h4 
,r4 #djih  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,june #bd1 #bjbe,mr4  
,fitzg]ald introduc$ ! foll[+ bill2 :i* 
0 ref]r$ to ! ,committee on ,f9ancial   
,s]vices  ,a ,,bill  ,to am5d !         
,securities ,ex*ange ,act ( #aicd to    
prohibit c]ta9 acts by proxy advisory   
firms1 & = o!r purposes4  #a4 ,%ort     
title  ,?is ,act may be cit$ z ! ,/opp+ 
,proxy ,advisor ,rackete]+ ,act4  #b4   
,conduct ( proxy advisory firms ,!      
,securities ,ex*ange ,act ( #aicd 7#ae  
,u4,s4,c4 #gh;a et seq47 is am5d$ by    
ins]t+ aft] section #ad;,b ! foll[+3    
#ad;,c4 ,conduct ( proxy advisory firms 
7a7 ,prohibit$ conduct ,x %all be       
unlawful = a proxy advisory firm to     
provide proxy vot+ advice if ! proxy    
advisory firm possesses a conflict (    
int]e/1 direct or indirect1 includ+ by--
  7#a7 provid+ consult+ s]vices (f]$    
directly or indirectly ?r\gh an         
affiliate to a regi/rant2  7#b7 modify+ 
a vot+ recomm5dation or o!rwise dep>t+ f

 ! adopt$ sy/ematic proc$ures &         
me?odologies ( ! proxy advisory firm or 
affiliate = ! provision ( proxy vot+    
advice bas$ on :e!r a regi/rant1 or     
affiliate ( ! regi/rant1 subscribes or w
 subscribe to ! s]vices or products ( ! 
proxy advisory firm or any affiliate ( !
 proxy advisory firm2  7#c7 provid+     
proxy vot+ advice dur+ any p]iod ( "t :5
 ! proxy advisory firm or any affiliate 
( ! proxy advisory firm is provid+      
/ew>d%ip or engagem5t s]vices to a      
%>ehold] propon5t1 a non-issu]1 a       
solicit+ p]son1 or affiliate ( any ( !  
=ego+ relat$ to ! matt] cov]$ by ! proxy
 vot+ advice2 or  7#d7 be+ a memb] ( any
 organization t supports a              
%>ehold]-sponsor$ proposal t is1 or is  
sub/antially ! same subject matt]s z1 ! 
proxy vot+ advice4  7b7 ,adm9i/rative   
civil p5alties available ,if !          
,commission f9ds1 aft] notice &         
opportunity = he>+ 9 a proce$+ in/itut$ 
pursuant to section #ba;,c1 t a proxy   
advisory firm violat$ subsection 7a71 ! 

,commission may1 9 addition to ent]+ an 
ord] "u section #ba;,c1 impose a civil  
p5alty aga9/ ! proxy advisory firm & any
 o!r p]son t ! ,commission f9ds 0 a     
cause ( su* violation4 ,! det]m9ation to
 impose su* a civil p5alty & ! am\nt ( !
 p5alty %all be gov]n$ by ! /&>ds set =?
 9 section #ba;,b4  7c7 ,def9itions ,9  
?is section3  7#a7 ,consult+ s]vices ,) 
respect to a proxy advisory firm or an  
affiliate ( a proxy advisory firm1 ! t]m
 consult+ s]vices means-- 7,a7 provid+  
any non-public in=mation ) respect to a 
proxy advisory firm's polices or rat+s  
me?odologies2  7,b7 any s]vices design$ 
to provide guidance or advice reg>d+ any
 corporate gov]nance1 comp5sation1      
corporate social responsibility1        
environm5tal1 social1 political1 or o!r 
policies1 disclosures1 or actions adopt$
 by a regi/rant ) respect to-- 7i7 any  
matt]--  7,i7 = :i* security hold] vote 
or cons5t is or w be solicit$2 &  7,,ii7
 z to :i* ! proxy advisory firm makes or
 w make a recomm5dation z to a security 

hold]'s vote or cons5t2 or  7ii7 matt]s 
includ$ 9 or cov]$ by any writt5 report 
or rat+ furni%$ by ! proxy advisory     
firm2 &  7,c7 su* o!r s]vices z !       
,commission may det]m9e4  7#b7 ,proxy   
advisory firm ,! t]m proxy advisory firm
 means a p]son t m>kets ! p]son's       
exp]tise z a provid] ( proxy vot+       
advice1 sep>ately f o!r =ms ( inve/m5t  
advice1 & sells su* proxy vot+ advice = 
a fee4  7#c7 ,proxy vot+ advice ,! t]m  
proxy vot+ advice means any advice t    
makes a recomm5dation to a security     
hold] z to ! vote1 cons5t1 or           
au?orization ( ! security hold] on a    
specific matt] = :i* ! approval ( !     
security hold] is solicit$4  7#d7       
,regi/rant ,! t]m regi/rant means !     
issu] ( ! securities 9 respect ( :i*    
proxies are to be solicit$4  4