To amend the Securities Exchange Act of 1934 to require certain disclosures by institutional investment managers in connection with proxy advisory firms, and for other purposes.

# HR 3402 Summary **What the Bill Would Do** HR 3402 would require large investment companies and pension funds to disclose more information about their relationships with proxy advisory firms—companies that advise investors on how to vote on corporate matters like board elections and executive compensation. The bill aims to increase transparency around these advisory relationships and potentially give investors better insight into how their money is being voted at shareholder meetings. **Who It Affects** This legislation primarily impacts institutional investment managers (like mutual funds and pension funds), proxy advisory firms (such as ISS and Glass Lewis), and ultimately individual investors whose retirement accounts and investments are managed by these institutions. Public companies would also be indirectly affected, as shareholders' voting patterns could change with increased transparency. **Current Status** The bill is currently in committee and has not yet been voted on by the full House.

It was introduced by Rep. Barry Loudermilk (R-GA) in the 119th Congress. The bill remains in the early legislative stage, meaning it would need committee approval and House passage before moving forward.