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SEC Files Lawsuit to Compel Proxy Advisor ISS to Comply with Subpoena
Commercial Services · Financial Publishing/Services · yonhap_finance · 2026-09-06
The U.S. Securities and Exchange Commission has initiated legal action to force proxy advisory firm ISS to comply with a subpoena regarding its voting data.
What Happened
Legal Action: The U.S. Securities and Exchange Commission (SEC) has filed a lawsuit in a federal court to compel proxy advisory firm ISS to comply with a subpoena. The regulator claims that ISS failed to fully provide requested information regarding its proxy voting recommendations and advisory activities.
Regulatory Investigation: The SEC began reviewing ISS in March and issued a subpoena in July after deeming the firm's initial document submissions insufficient. The agency clarified that this is currently a fact-finding investigation and does not constitute a formal conclusion of wrongdoing by the firm.
ISS Defense: ISS has challenged the subpoena, citing First Amendment protections regarding freedom of speech. The firm expressed concerns that the disclosure requirements could expose both the company and its clients to potential retaliation for their voting activities.
Broader Context: This move aligns with increased federal scrutiny of proxy advisory firms, which hold significant influence over corporate governance. ISS, majority-owned by Deutsche Börse, is currently facing multiple regulatory pressures, including ongoing antitrust investigations by the FTC.