SEC sues ISS as Trump administration ramps up scrutiny of proxy advisers

Live updates

1. 8d ago

   SEC sues ISS to compel handover of client voting data

   The Securities and Exchange Commission has filed a lawsuit in Pennsylvania federal court against Institutional Shareholder Services (ISS). The regulator seeks a court order to force the Rockville-based proxy adviser to produce four years of client proxy voting records and recommendations. This legal action follows a period of increased scrutiny of proxy advisers by the Trump administration and is linked to an ongoing probe into environmental, social, and governance (ESG) practices. The SEC is specifically challenging ISS over its compliance with a subpoena for client-level data.

   Why it matters

   Proxy advisers influence how institutional investors vote on corporate governance and executive pay. The SEC is examining these influences as part of a broader regulatory shift under the current administration. The outcome will determine if proxy advisers must disclose private client voting behaviors to federal regulators.

   What is confirmed

   • The SEC sued Institutional Shareholder Services in Pennsylvania federal court.
   • The SEC is seeking a court order to force ISS to hand over client voting data and proxy recommendations.
   • The Trump administration has increased its scrutiny of proxy advisers.
   • The SEC is seeking four years of client proxy voting records.

   Still unconfirmed

   • The SEC's demand for ISS client data is part of an ESG probe.
   • ISS is based in Rockville.

   What to watch next

   • The Pennsylvania federal court ruling on the SEC's request for a court order
   • ISS's legal response to the subpoena compliance allegations
   Sources used for this update (8)

   1. cnbc.com — SEC sues ISS as Trump administration ramps up scrutiny of proxy advisers
   2. Financial Times — US regulator sues ISS as it steps up scrutiny of proxy advisers
   3. Investing.com — SEC seeks court order forcing ISS to hand over client voting data
   4. Crypto Briefing — SEC takes Institutional Shareholder Services to court over subpoena compliance
   5. Briefs Finance — SEC sues ISS to force handover of proxy recommendations and voting records
   6. Bloomberg.com — SEC Seeks Court Order for ISS Client Data Sought in ESG Probe
   7. Briefs Finance — SEC takes ISS to court over client-level proxy voting data
   8. hoodline.com — SEC Sues Rockville Proxy Giant ISS, Demands Four Years of Client Vote Data
   confidence 95%