A bill for an act relating to proxy advisors and proxy advisory services, and including applicability provisions.

HF 2196 requires proxy advisors (firms providing voting recommendations to shareholders) to disclose whether their voting advice or default recommendations are based on a financial analysis. If not based on analysis, advisors must clearly state this to shareholders and companies; if based on analysis, they must provide the analysis upon request. The bill applies to advisors working with Iowa-based companies or companies with Iowa operations, focusing on transparency around voting recommendations. It takes effect July 1, 2026, and does not change voting rules but mandates clearer disclosure of recommendation methods.