; or (2) 270 days after the date of enactment of this section. . (b) Conforming amendment Section 17(a)(1) of the Securities Exchange Act of 1934 ( 15 U.S.C. 78q(a)(1) ) is amended by inserting proxy advisory firm, after nationally recognized statistical rating organization, . 4. Duties of investment advisors, asset managers, and pension funds (a) Reporting requirements Not later than 1 year after the date of the enactment of this Act and annually thereafter, any covered entity that retains the services of a proxy advisory firm with respect to the preceding year shall provide to the beneficiaries and customers of the covered entity, as applicable, a report that includes— (1) the percentage of votes cast on shareholder proposals that follow proxy advisor firm recommendations for each proxy advisory firm retained by the covered entity; (2) the percentage of votes cast on environmental-, social-, or governance-related shareholder proposals that follow proxy advisory firm recommendations for each proxy advisory firm retained by the covered entity; and (3) an explanation of— (A) how proxy advisory firm recommendations are used by the covered entity in making voting decisions; (B) how such recommendations are reconciled with the fiduciary duty of the covered entity to vote in the best economic interests of shareholders; (C) how frequently votes are changed when an error occurs or due to new information from issuers; and (D) the degree to which investment professionals of the covered entity are involved in such voting decisions. (b) Requirements With respect to shareholder proposals of an issuer, a covered entity with more than $100,000,000,000 in assets under management shall— (1) provide customers with a mechanism to indicate how the covered entity should vote on their behalf; (2) in any materials provided to customers and related to customers voting their shares, clarify that shareholders are not required to vote on every proposal