What does Preamble of Empowering Shareholders Act of 2026 do?

This bill proposes to amend the Investment Advisers Act of 1940. The amendment aims to establish requirements for proxy voting of passively managed funds. The bill's purpose is 'to establish requirements for proxy voting of passively managed funds, and for other purposes.'

What does SHORT TITLE. of Empowering Shareholders Act of 2026 do?

This bill is formally titled the Empowering Shareholders Act of 2026.

What does PROXY VOTING OF PASSIVELY MANAGED FUNDS. of Empowering Shareholders Act of 2026 do?

This section amends the Investment Advisers Act of 1940 to establish requirements for the proxy voting of passively managed funds. Investment advisers with authority to vote proxies for passively managed funds must vote in accordance with the instructions of the beneficial owner, the board of directors' recommendations, abstain from voting, or instruct vote tabulators to mirror other shareholders' elections. A 'safe harbor' protects investment advisers from liability if they vote in the required manner. The rules do not apply to votes on routine matters or to foreign private issuers with fully and fairly disclosed voting policies. Investment advisers must disseminate information and provide a form to voting persons to select a published voting policy, with electronic delivery options available. The section defines several key terms, including 'covered security,' 'passively managed fund,' 'published voting policy,' 'qualified fund,' 'routine matter,' and others.

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Empowering Shareholders Act of 2026

Last updated: 4/14/2026 · Introduced: 4/14/2026

Author: Bill Huizenga (R-MI)

TL;DR (AI)

The Empowering Shareholders Act of 2026 amends the Investment Advisers Act of 1940 to require investment advisers of passively managed funds to vote proxies according to beneficial owner instructions, board recommendations, or by abstaining or mirroring other shareholders' votes.
Investment advisers are provided a 'safe harbor' from liability if they comply with the established proxy voting requirements.
The bill mandates that investment advisers disseminate information and offer a form allowing voting persons to select a published voting policy, including electronic delivery options.

119th Congressin committeeHR. 8286(In Committee)Official page

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Other Sections

Includes provisions on preamble, short title., and 1 more.

3 sections

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