Business & Finance
SEC sues proxy advisory firm ISS to enforce subpoena for records
Federal regulators asked a court to compel Institutional Shareholder Services to provide records, according to CNBC.
The short version
- The SEC filed a subpoena-enforcement lawsuit to require proxy advisory firm ISS to provide requested information.[CNBC]
- Regulators noted that their inquiry remains in the fact-finding stage and has reached no conclusions on legal violations.[CNBC]
- ISS previously argued the subpoena raises First Amendment concerns and risks retaliatory harm to itself and its clients.[CNBC]
- The legal action follows an executive order signed by President Donald Trump directing the SEC to review proxy adviser rules.[CNBC]
Key facts
- The SEC filed a subpoena-enforcement action against Institutional Shareholder Services to compel the firm to provide requested information.[CNBC]
- The SEC stated that its probe is in a fact-finding stage and has made no determination that ISS violated federal securities laws.[CNBC]
- President Donald Trump signed an executive order in December directing regulators to review proxy adviser rules.[CNBC]
What remains uncertain
- It remains unverified whether ISS violated any federal securities laws or whether the court will uphold the First Amendment objections raised by the firm.[CNBC]
Sources
Outlet counts describe coverage, not independent confirmation. Reports may share a wire service or original source.