BofA's Merrill Lynch to end use of proxy advisers starting 2027
BAC•Merrill Lynch plans to stop using proxy advisers starting in 2027. Beginning in January, clients will no longer be able to delegate voting authority to Institutional Shareholder Services, and Merrill will assume authority for clients who do not opt out by December 15.
1. Voting changes
Bank of America's Merrill Lynch unit plans to stop using proxy advisers starting in 2027, according to a document. Under its revamped framework, clients will not be able to delegate proxy voting authority to Institutional Shareholder Services starting in January.
2. Client transition
Merrill will assume proxy voting authority for clients who had delegated it to ISS and do not opt out of the transition by December 15. Proxy advisers review shareholder proposals and corporate governance issues and provide voting recommendations to institutional investors ahead of annual shareholder meetings.
3. Industry context
JPMorgan Chase's asset management division moved to cut ties with U.S. proxy advisers earlier this year. In 2025, President Donald Trump signed an executive order aimed at increasing oversight of the proxy advisory industry.
