Corporate Governance Fairness Act

The Corporate Governance Fairness Act defines "proxy advisory firms" as companies providing voting research, analysis, or recommendations to investors about corporate governance, while exempting very small firms with annual revenues below $5 million (adjusted annually for inflation). It requires the Securities and Exchange Commission (SEC) to conduct regular inspections of these firms' records to ensure they avoid false statements or material omissions when advising clients. The SEC must also submit a report to Congress within two years evaluating conflict-of-interest policies at these firms and whether additional investor protections are needed, with updated reports every five years. This bill directly affects proxy advisory firms and the SEC, focusing on transparency in corporate voting guidance.