[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4590 Introduced in House (IH)]

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118th CONGRESS
  1st Session
                                H. R. 4590

 To amend the Securities Exchange Act of 1934 to provide for liability 
  for certain failures to disclose material information in connection 
           with proxy voting advice, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 12, 2023

  Mr. Steil introduced the following bill; which was referred to the 
                    Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
 To amend the Securities Exchange Act of 1934 to provide for liability 
  for certain failures to disclose material information in connection 
           with proxy voting advice, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. LIABILITY FOR CERTAIN FAILURES TO DISCLOSE MATERIAL 
              INFORMATION OR MAKING OF MATERIAL MISSTATEMENTS.

    Section 14 of the Securities Exchange Act of 1934 (15 U.S.C. 78n) 
is amended by adding at the end the following:
    ``(l) False or Misleading Statements.--For purposes of section 18, 
the failure to disclose material information (such as a proxy voting 
advice business's methodology, sources of information, or conflicts of 
interest) or the making of a material misstatement regarding proxy 
voting advice that makes a recommendation to a security holder as to 
the security holder's vote, consent, or authorization on a specific 
matter for which security holder approval is solicited, and that is 
furnished by a person that markets the person's expertise as a provider 
of such proxy voting advice separately from other forms of investment 
advice, and sells such proxy voting advice for a fee, shall be 
considered to be false or misleading with respect to a material 
fact.''.
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