Protecting American Investors From Foreign-Owned and Politically-Motivated Proxy Advisors

Key Points

• The order tells government agencies to crack down on two major proxy advisor firms that guide how big investors vote in company elections.
• It pushes the Securities and Exchange Commission to police these firms more, including for possible fraud, conflicts of interest, and hidden political goals.
• It tells regulators to question advice based on diversity or environmental goals if that might reduce pure money returns for investors.
• It orders the Labor Department to tighten protections for pensions and 401(k)s, making sure advisors put financial returns first.
• It asks the Federal Trade Commission to investigate if these firms are misleading investors or breaking competition rules in ways that could hurt retirement savings.