The proposed bill, known as the "Wyoming Proxy Advisor Transparency Act," aims to enhance transparency and accountability among proxy advisors by establishing specific disclosure requirements. It mandates that proxy advisors disclose whether their recommendations are based on a written financial analysis, particularly when advising against company management on shareholder proposals. The bill outlines the definitions of key terms, such as "proxy advisor," "company proposal," and "written financial analysis," and emphasizes the importance of these disclosures to prevent deceptive trade practices. Additionally, it authorizes the Secretary of State to discipline registered investment advisers for violations of these disclosure requirements and provides for civil causes of action for shareholders affected by non-compliance.

The bill includes new legal language that allows for penalties and civil actions against proxy advisors who fail to meet the disclosure standards set forth in the legislation. Specifically, it inserts provisions that classify violations of the disclosure requirements as unlawful deceptive trade practices and establishes a framework for enforcement. The act is set to take effect on July 1, 2026, with the Secretary of State tasked with promulgating necessary rules for implementation.

Statutes affected:
Introduced: 17-4-412, 40-12-105