SEC Seeks Court Order to Force ISS to Turn Over Voting Data

According to Sina Finance, the U.S. Securities and Exchange Commission asked a federal court to order Institutional Shareholder Services to provide detailed client-level voting data needed for an investigation into the proxy voting adviser. The SEC said ISS refused to fully comply with an administrative subpoena and is seeking records from the past four years, including client identification documents and voting data. The investigation began in March to determine whether the company complied with securities laws, including its fiduciary duty to act in clients' best interests. In a filing on Friday, the SEC said it has full authority to examine whether ISS's proxy voting advice to clients was driven by specific political or policy goals that harmed client interests. The probe stems from an executive order signed by U.S. President Donald Trump in December last year, which directed the SEC chair to restrain proxy advisers such as ISS and Glass Lewis from giving guidance on diversity, equity and inclusion policies and environmental, social and governance matters.