Senators Introduce Bill Requiring Proxy Advisory Firm Registration

On November 14, 2018, six U.S. Senators introduced the bipartisan Corporate Governance Fairness Act. The bill proposes an amendment to the Investment Advisers Act of 1940 that would require proxy advisory firms, such as ISS and Glass Lewis, to register as investment advisers. The full bill is available here. This follows action taken by the SEC in September 2018 to withdraw two previous no-action letters given to Egan-Jones Proxy Services and ISS in 2004 by the Staff of the Division of Investment Management that formed the basis for previous positions that proxy advisory services were not required to register as investment advisers.