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[SITUATION] · [ACTIVE] · [BUSINESS]

2 clusters · 8 sources · 4 days · First seen · Last updated

SEC investigation of Institutional Shareholder Services

Overview

The U.S. Securities and Exchange Commission (SEC) has initiated legal action against proxy advisory firm Institutional Shareholder Services (ISS) to compel the release of documents and client-level voting data. The investigation, which began in March 2024, seeks to determine if ISS is fulfilling its fiduciary duties and adhering to securities laws regarding its proxy voting recommendations.

ISS has challenged the subpoenas, citing First Amendment concerns and arguing that the requests are overly burdensome or involve proprietary information. The firm expressed concern that disclosing such data could expose both ISS and its clients to retaliation regarding voting decisions on matters of public importance.

The regulatory scrutiny follows a December 2024 executive order from President Donald Trump, which directed agencies to examine whether proxy advisers use environmental, social, and governance (ESG) policies to advance political agendas. The SEC maintains the probe is a fact-finding mission to ensure that advice influencing massive amounts of shareholder capital is not driven by undisclosed policy aims.

Entities

Institutional Shareholder Services · Securities and Exchange Commission · Donald Trump · Deutsche Börse Group · Glass Lewis

Timeline

  1. 4 days ago

    [BUSINESS] 3 sources
    SEC seeks court order to compel ISS to release proxy voting data

    The SEC is seeking a court order to compel ISS to release detailed proxy voting data as part of an investigation into whether the firm's advice is driven by political or ESG-related agendas.

  2. 8 days ago

    [BUSINESS] 5 sources
    SEC sues Institutional Shareholder Services over subpoena compliance

    The SEC has sued proxy adviser Institutional Shareholder Services (ISS) to compel the release of documents regarding its voting recommendations and activity, citing non-compliance with a July subpoena.

Sources

anyword.com · cryptobriefing.com · hellot.net · insurancejournal.com · losangelesweeklytimes.com · tekedia.com · thefinancialanalyst.net · tribunadepetropolis.com.br