Rumor has it that Xiaomo (JPM.US) decided to cut off cooperation with all agency consultants to use its own AI platform

The Zhitong Finance App learned that according to a related report on Wednesday, citing the contents of an internal memorandum, J.P. Morgan Chase (JPM.US)'s asset management department has immediately cut off all contacts with all agency consulting firms.

The upcoming proxy season usually starts in March and lasts until June until each company holds an annual shareholders' meeting. In the meantime, the bank will begin using an internal artificial intelligence-driven platform called “Proxy IQ” to assist US companies in processing voting matters.

According to information, agency consulting firms, such as Glass Lewis and Institutional Shareholder Services (ISS), play the role of “voting brains” and “governance gatekeepers” in the capital market. Its core function is to provide independent research and voting advice to large institutional investors (such as public funds, pensions, insurance companies) on shareholders' meetings of listed companies. Their recommendations can influence the outcome of board elections, executive compensation decisions, and environmental or social decisions.

And the two companies mentioned above have been criticized for a long time. Critics are mostly business executives, who accuse the two companies' proposals of being too influential. However, in stark contrast to this, institutional investors are broadly seeking their guidance.

Spokespersons for J.P. Morgan Chase, Glass Lewis, and Institutional Shareholder Services (ISS) did not immediately respond to requests for comment.

Over the years, conservatives and some business leaders have criticized acting advisors and large fund managers, saying they often recommend voting against board decisions or directors, and that they focus too much on climate and social issues.

In December of last year, US President Donald Trump signed an executive order aimed at strengthening regulation of the agency consulting industry on the grounds that large companies often “advance and prioritize aggressive politically motivated agendas.”

In response, Glass Lewis and Institutional Shareholder Services (ISS) have denied these allegations on several occasions.