This bill establishes new regulations for proxy advisors and their advisory services in Iowa. It defines key terms such as "company," "company proposal," "default recommendation," "financial analysis," "proxy advisor," "proxy advisory service," and "proxy proposal." The bill mandates that if a proxy advisor provides a service or makes a default recommendation against company management that is not based on a financial analysis, they must disclose specific information to shareholders and the company's board of directors. Additionally, they are required to post a statement on their website regarding the nature of their services.

If the proxy advisory service or default recommendation is based on a financial analysis, the advisor must also provide disclosures and make the financial analysis available upon request. Violations of these provisions are classified as unlawful practices, allowing affected individuals or companies to seek injunctive relief in district court. The bill will take effect for services provided on or after July 1, 2026.

Statutes affected:
Introduced: 714.16