Limits SEC disclosure mandates and shareholder proposals and changes bank regulator rules

§1What it does

Why this matters: A plain-English description of the bill as it was voted on, written by us from the official summary and text.

✎ Drafted by AI from the public sources cited. Each sentence links to its source.

Before passing this bill in September 2024, the House replaced its text with a broader package that combines the original bill on corporate disclosure rules with several other securities and banking measures; the Congressional Research Service summary covers only the original bill, so this description is based on the House-passed text.^2,3 It would require the Securities and Exchange Commission (SEC), when it writes disclosure rules, to provide that companies need to disclose only information they judge material, meaning important to investors' voting or investment decisions; it would also create an SEC advisory committee drawn from public companies and their advisers and bar the SEC from forcing companies to include shareholder proposals in their proxy voting materials.^2,3 It would also let companies leave out shareholder proposals on environmental, social or political subjects, require firms that sell shareholder-voting advice to register with the SEC, and require brokers and investment advisers to judge a customer's best interest on financial factors alone unless the customer agrees in writing to consider others.³ Finally, it would require federal banking regulators to notify Congress before acting on certain non-binding recommendations or issuing major rules meant to follow international bodies such as the Basel Committee, eliminate the Federal Reserve's vice chair for supervision position, and keep SEC registration fees out of the agency's reserve fund in 2026 and 2027.³

§2Status

§3How Congress voted

Why this matters: The official count.