ASA Welcomes Congressional Action on Index Fund Voting Legislation
Group vows to work with lawmakers on initiatives to empower retail shareholders.
WASHINGTON – The American Securities Association (ASA) today welcomed a Senate Banking Committee hearing on the index fund voting process.
“Index investing has become a powerful tool for individual investors—leading to reduced costs and increased access to diversified investment funds. Unfortunately, this has also increased the economic concentration and political power wielded by certain asset managers," said ASA CEO Chris Iacovella. "The ASA applauds the Senate Banking Committee for holding this important hearing and for it’s focus on empowering hardworking American retail investors and retirement savers. We look forward to working with all members of Congress on the INDEX Act and related investor protection issues.”
At today’s hearing, Senator Dan Sullivan (R-AK) will testify, along with Professor John C. Coates IV, John F. Cogan, Jr., Professor of Law and Economics, Harvard Law School; and Professor Caleb Griffin, Assistant Professor of Law, University of Arkansas School of Law.
Senator Sullivan (R-AK) has introduced legislation, the Investor Democracy is Expected (INDEX) Act, which requires investment advisors of passively-managed funds to vote proxies in accordance with the instructions of fund investors—not at the discretion of the adviser.
ASA’s regional financial services companies work in communities across the country to create jobs, grow the economy, and increase prosperity for all Americans. The ASA exclusively represents the capital market and private client interests of its members and seeks to promote free market principles making it easier to access financial advice and capital. ASA members help Americans save for retirement, provide Main Street businesses with capital to grow, and advise hardworking Americans how to create and preserve wealth. For the latest updates follow @AmerSecurities and learn more at http://americansecurities.org/.