SEC sues ISS as Trump administration ramps up scrutiny of proxy advisers
The SEC sued Institutional Shareholder Services to enforce a subpoena as the Trump administration increases scrutiny of influential proxy advisers.
TL;DR
- The SEC is suing Institutional Shareholder Services (ISS) to enforce an administrative subpoena.
- ISS has reportedly refused to fully comply with the subpoena seeking information on its recommendations and voting activity.
- The lawsuit is part of the Trump administration's increased scrutiny of proxy advisory firms.
- ISS and rival Glass Lewis reportedly control over 90% of the proxy-advisory market.
- The SEC has not yet concluded that ISS violated federal securities laws, with the investigation in the fact-finding stage.