SEC sues ISS as Trump administration ramps up scrutiny of proxy advisers

A person on a scooter leaves the entrance to the U.S. Securities and Exchange Commission headquarters building on May 26, 2026, in Washington, DC. J. David Ake | Getty ImagesThe Securities and Exchange Commission sued Institutional Shareholder Services, seeking to force the influential proxy adviser to turn over information as the Trump administration steps up scrutiny of firms that help investors decide how to vote their shares.The SEC filed the subpoena-enforcement action Friday in the U.S. District Court for the Eastern District of Pennsylvania, saying ISS had refused to fully comply with an administrative subpoena seeking information about its proxy recommendations and voting activity.The agency's Division of Examinations began reviewing ISS in March and requested data related to the firm's recommendations and votes, the SEC said. After ISS did not produce all of the requested information, the enforcement division opened an inquiry and issued a subpoena on July 21.The SEC said ISS has continued to withhold some records despite extended deadlines and repeated efforts to resolve the dispute. The regulator said its investigation remains in the fact-finding stage and that it has no...