Protecting American Investors From Foreign-Owned and Politically-Motivated Proxy Advisors
Dec 16, 2025
Dec 16, 2025
Summary
Aims to protect Americans' retirement and other investments by increasing control over companies that advise on shareholder votes.
What problem does this solve?
Two foreign-owned companies have great power over how big American companies are run, and they may be pushing political goals instead of making money for investors. This order tells government groups to check the rules for these companies to make sure they are focused on helping investors and not on politics.
Who does this affect?
- American investors
- Proxy advisory firms
- Publicly traded American companies
What does this order do?
Directs the SEC to review proxy advisor rules
Requires the Chairman of the Securities and Exchange Commission (SEC) to review and possibly change or remove rules for proxy advisors, especially those related to ESG and DEI policies.
Orders an investigation into unfair practices
Directs the Federal Trade Commission (FTC) to investigate if proxy advisors are using unfair, deceptive, or anti-competitive practices that could harm consumers' investments.
Strengthens protections for retirement plans
Requires the Secretary of Labor to review rules for retirement plans to ensure that proxy advisors act only in the financial interest of plan members.
Considers requiring more transparency from proxy advisors
Tasks the SEC with considering new rules that would force proxy advisors to be more open about their recommendations, methods, and any conflicts of interest.
What is the real world impact?
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Targets corporate social and environmental policies
Uses investor protection as a reason to direct federal agencies to review and possibly remove rules that support environmental, social, and governance (ESG) and diversity, equity, and inclusion (DEI) initiatives in major companies.
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Ensures investment advisors focus on financial returns
Aims to make sure that companies advising on shareholder votes prioritize making money for investors over any other social or political goals, protecting retirement accounts like 401(k)s and IRAs.
When does this start?
This order becomes effective on December 11, 2025, when it was signed.