On Jan. 29, 2026, Wells Fargo announced that its Wealth & Investment Management division launched a proprietary system to manage proxy voting internally, ending its use of outside proxy advisory services.
The firm said it will now direct proxy voting for index funds and other managed products where Wells Fargo invests and votes on behalf of clients using its own custom policies focused on clients’ long-term economic interests. Wells Fargo Wealth & Investment Management oversees about $2.5 trillion in client assets, according to the firm.
The change makes Wells Fargo the second of the four largest U.S. banks by assets to move away from external proxy advisors, following a similar announcement by JPMorgan Chase earlier in January. According to a Wall Street Journal report, Wells Fargo has also cut ties with Institutional Shareholder Services (ISS).
Proxy advisory firms provide institutional investors with research, voting recommendations, and administrative services related to shareholder voting. They have traditionally played a central role in how large asset managers vote on shareholder proposals, particularly as asset managers expanded index-based investing and sought standardized voting guidance.
By moving proxy voting in-house, Wells Fargo will have more direct control over voting decisions and less exposure to outside recommendations. Supporters say the change strengthens fiduciary accountability by aligning voting decisions more closely with clients’ financial interests, while critics say it could reduce independent governance analysis and transparency.
ISS and Glass Lewis dominate the U.S. proxy advisory market. Together, they account for more than 90% of the industry, according to a September 2025 Congressional Research Service report. Their recommendations are widely used by asset managers when voting on shareholder proposals.
The federal government's scrutiny of proxy advisors increased in December 2025, when Donald Trump issued an executive order directing the SEC to expand oversight of proxy advisors. The order followed congressional hearings on proxy advisors’ influence in May 2025, as well as an SEC decision to limit no-action responses for the 2025–26 proxy season in November 2025.
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