Insurance
Home›Insurance›Industry & Deals›SEC seeks court order to force ISS to hand over client…
SEC seeks court order to force ISS to hand over client voting data
The SEC is asking for four years of records, including documents that identify ISS clients and their voting data, as part of an investigation launched in March.
The Securities and Exchange Commission asked a federal court to compel Institutional Shareholder Services Inc. to provide client-level voting records the agency says ISS has not fully turned over. The request covers documents over a four-year period, including materials identifying clients and their voting data, according to the SEC filing.
The regulator said the probe began in March and is focused on whether ISS is complying with securities laws, including its fiduciary duty to provide advice in clients’ best interests. The SEC also argued it is appropriate to examine whether ISS’s proxy voting guidance is influenced by a political or policy aim that could harm clients’ interests.
The SEC noted ISS’s refusal to produce records has slowed the agency’s work as staff in both the Division of Examinations and the Division of Enforcement pursue the matter. The investigation follows a December executive order that directed the SEC chairman to curb proxy advisers from providing guidance tied to diversity, equity and inclusion policies or environmental, social and governance matters.
ISS said it is committed to cooperating with the SEC but raised First Amendment concerns. An ISS spokesman said clients share the information with an expectation it will not be disclosed and that complying could expose ISS and its clients to potential retaliation for protected speech and voting decisions.