Empowering Shareholders Act of 2026

The Empowering Shareholders Act of 2026 amends the Investment Advisers Act of 1940 to change how investment advisers vote proxies for shares held in passively managed funds. For non-routine matters, it mandates that advisers choose one of four methods: follow beneficial owner instructions (which can include selecting a published voting policy), vote with the issuer's board recommendations, abstain, or mirror other shareholders' votes. The bill provides a legal safe harbor for advisers adhering to these rules and requires them to disseminate information and options for beneficial owners to select a voting policy. This directly affects investment advisers and investors in passively managed funds by altering proxy voting procedures and increasing investor influence over how their shares are voted.