SEC Sues Proxy Adviser ISS to Enforce Subpoena

The U.S. Securities and Exchange Commission has filed a lawsuit against Institutional Shareholder Services (ISS) in an effort to enforce a subpoena issued to the influential proxy advisory firm, CNBC reported.

According to the report, the legal action is part of a broader push by the Trump administration to increase regulatory scrutiny of proxy advisers, which provide voting recommendations to institutional investors on corporate governance matters such as board elections and shareholder proposals.

CNBC did not specify the contents of the subpoena or the exact allegations underlying the SEC's request for enforcement. Details of ISS's response to the lawsuit were not included in the report.

Proxy advisory firms like ISS have faced periodic regulatory attention in the United States over their influence on corporate voting outcomes and the standards they use to formulate recommendations. The latest legal action indicates an escalation in oversight efforts under the current administration, per CNBC.

Further details on the case, including the specific claims made by the SEC and any timeline for court proceedings, were not immediately available in the source report.