Trump Orders Major Overhaul of US Navy Shipbuilding 
New Mexico Sues DOJ Over Unredacted Jeffrey Epstein Files Amid Ongoing Investigation 
Trump Targets 1,000 U.S. Space Launches Annually by 2030 
UN Chief Raises Concern Over US Sanctions on ICC Officials 
Judge Blocks Trump Mail Voting Order Ahead of 2026 Midterms 
SEC Sues Former Tricolor Executives Over $1.9 Billion Investor Fraud Scheme 
Xiaomi Shares Jump on Europe EV Expansion Plan 
Thomson Reuters C-Track Cyberattack Hits Courts Across U.S. and Canada 
FAA to Pause Reagan National Airport Flights for Freedom 250 IndyCar Race 
OpenAI Rejects Apple Trade Secret Theft Claims 
Iran Allows Iraqi Oil Tankers Through Strait of Hormuz 
BP Names Ian Tyler Permanent Chairman After Governance Shake-Up 
Fast Retailing Shares Drop as Uniqlo Japan August Sales Fall 
US Tightens Cuba Sanctions, Targets Officials and State Entities 
Bashar al-Assad Sentenced to Death by Syrian Court 
CK Hutchison Seeks $1.5 Billion From Panama Over Canal Ports 
U.S. Probes Apex Logistics Over Nvidia AI Chip Shipments to China 
Add as a preferred source on Google
The U.S. Securities and Exchange Commission (SEC) has asked a federal court to force Institutional Shareholder Services (ISS) to provide detailed client voting records as part of an investigation into the proxy advisory firm's business practices.
According to Bloomberg, the SEC said ISS has not fully complied with an administrative subpoena connected to an investigation launched in March. Regulators are examining whether the company follows federal securities laws, including its fiduciary duty to provide recommendations that serve clients' best interests.
The SEC is seeking four years of records from ISS, including documents identifying clients and information detailing how those investors voted on corporate matters.
The investigation comes after President Donald Trump issued an executive order in December directing the SEC chairman to increase scrutiny of proxy advisory firms, including ISS and Glass Lewis. The order focused particularly on recommendations involving environmental, social and governance (ESG) issues and diversity, equity and inclusion (DEI) policies.
According to the regulator, determining whether proxy-voting recommendations are shaped by political or policy objectives rather than clients' financial interests falls within the SEC's oversight authority.
ISS said it remains willing to cooperate with the investigation but has challenged the breadth of the SEC's demand on First Amendment grounds. The proxy adviser argued that clients submit voting information with an expectation of confidentiality.
The company also warned that providing detailed voting records could expose both ISS and its customers to possible retaliation related to protected speech and investment voting decisions.
The legal dispute intensifies Washington's scrutiny of the proxy advisory industry. Firms such as ISS can wield significant influence over institutional investors' decisions on executive compensation, board elections, corporate governance and shareholder proposals.
ISS is majority-owned by Deutsche Boerse, which acquired its controlling stake in 2021. The SEC court action could further increase regulatory pressure on proxy advisers as the Trump administration seeks changes to how ESG and DEI considerations influence investment decisions and corporate shareholder voting.
