Iowa HF2196 mandates proxy advisors to disclose non-financial recommendations and provide financial analysis for certain services.

Iowa HF2196 establishes requirements for proxy advisors and proxy advisory services. It mandates that proxy advisors disclose when their services include recommendations against company management that are not based on financial analysis. Proxy advisors must also post a statement about these services on their websites. If a service or default recommendation is based on financial analysis, the advisor must provide the analysis to shareholders and company boards, except for services providing voting recommendations or policies. A violation of these provisions is considered an unlawful practice.

Iowa HF2196 mandates proxy advisors to disclose non-financial recommendations and provide financial analysis for certain services.

Iowa HF2196 establishes requirements for proxy advisors and proxy advisory services. It mandates that proxy advisors disclose when their services include recommendations against company management that are not based on financial analysis. Proxy advisors must also post a statement about these services on their websites. If a service or default recommendation is based on financial analysis, the advisor must provide the analysis to shareholders and company boards, except for services providing voting recommendations or policies. A violation of these provisions is considered an unlawful practice.