S2700-118

Introduced

To amend the Investment Advisers Act of 1940 to require investment advisers for passively managed funds to arrange for pass-through voting of proxies for certain securities, and for other purposes.

118th Congress Introduced Jul 27, 2023

Analysis under review: This bill has generated analysis that may be too generic or incomplete. Clause-level evidence remains available below.

Summary

What This Bill Does

This bill, To amend the Investment Advisers Act of 1940 to require investment advisers for passively managed funds to arrange for pass-through voting of proxies for certain securities, and for other purposes., changes federal law or congressional policy affecting financial institutions, investors, and borrowers. The main policy domain is Finance, Environment, Transportation.

Who Benefits and How

financial institutions, investors, and borrowers may benefit from new authority, funding, eligibility, regulatory clarity, or reduced risk created by the bill.

Who Bears the Burden and How

federal implementing agencies, financial institutions, investors, and borrowers may take on implementation duties, reporting obligations, compliance costs, or oversight responsibilities.

Key Provisions

  • Section S1: 1. Short title This Act may be cited as the INvestor Democracy is EXpected Act or the INDEX Act.
  • Section id3CFD947C713340B38ED2791B24F52AF0: 2. Proxy voting of passively managed funds The Investment Advisers Act of 1940 (15 U.S.C. 80b–1 et seq.) is amended by inserting after section 208 (15 U.S.C....
  • Section id7D3D4021112C478CAF545811E7392C18: 208A. Requirement with respect to proxy voting of passively managed funds In this section— the term covered security— means a voting security, as that term is...
  • Section id7B358AE0822D44529781696EC05558C7: 3. Voting instructions from customers Section 14(b)(1) of the Securities Exchange Act of 1934 (15 U.S.C. 78n(b)(1)) is amended by inserting voting instruction,...

Evidence Chain:

This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers with clause-level evidence links.

At a Glance

What This Bill Does

This bill, To amend the Investment Advisers Act of 1940 to require investment advisers for passively managed funds to arrange for pass-through voting of proxies for certain securities, and for other purposes., changes federal law or congressional policy affecting financial institutions, investors, and borrowers.

Key Policy Areas

Finance, Environment, Transportation

Primary Purpose

This bill, To amend the Investment Advisers Act of 1940 to require investment advisers for passively managed funds to arrange for pass-through voting of proxies for certain securities, and for other purposes., changes federal law or congressional policy affecting financial institutions, investors, and borrowers.

Policy Domains

Finance Environment Transportation

Whole bill

Identified Gains
  • financial institutions, investors, and borrowers
Model: codex-gpt-5 | Version: bill_summary_v2 | Source: is
financial institutions, investors, and borrowers: ,
Identified Costs
  • federal implementing agencies
  • financial institutions, investors, and borrowers
Model: codex-gpt-5 | Version: bill_summary_v2 | Source: is
federal implementing agencies: ,
financial institutions, investors, and borrowers: ,

Legislative Progress

Introduced
Introduced Committee Passed
Jul 27, 2023

Mr. Sullivan (for himself, Mr. Crapo, Mr. Grassley, Mr. Cornyn, …

Impact analysis is available but no clear stakeholder effects identified. View clause-level analysis →

Bill Structure & Actor Mappings

Who is "The Secretary" in each section?

Domains
Finance Environment Transportation
Actor Mappings
"the_commission"
→ The commission identified in the operative section

Key Definitions

Terms defined in this bill

2 terms
"registrant" §id3CFD947C713340B38ED2791B24F52AF0

an issuer of covered securities

"registrant" §id7D3D4021112C478CAF545811E7392C18

an issuer of covered securities

We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.

Learn more about our methodology