Part 2/16:
Potential regulations include executive orders that could ban or restrict proxy advice on shareholder recommendations or impose requirements for index funds to align their votes explicitly with their clients’ preferences. This means that index fund managers would be compelled to vote in a manner that reflects their investors’ interests, rather than following proxy advisors or their own decision-making frameworks. The idea of aligning voting behavior directly with retail investors is lauded by many industry observers as a step toward protecting individual shareholder rights—highlighting that these collective investment vehicles are meant to serve their clients’ interests, not external consultants wielding outsized influence.