A person on a scooter departs from the entrance of the U.S. Securities and Exchange Commission headquarters building on May 26, 2026 in Washington, DC.
J. David Ake | Getty Images
As the Trump administration ramps up scrutiny of companies that help investors decide how to vote their stocks, the Securities and Exchange Commission has sued Institutional Shareholder Services to force influential proxy voting advisers to hand over information.
The SEC filed a subpoena enforcement action Friday in the U.S. District Court for the Eastern District of Pennsylvania, alleging that ISS has refused to fully comply with administrative subpoenas seeking information about proxy nominations and voting activities.
According to the SEC, the agency’s review division began reviewing ISS in March, requesting data related to the company’s recommendations and votes. When ISS did not provide all requested information, the Enforcement Division opened an investigation and issued a subpoena on July 21.
The SEC said ISS continues to withhold some records despite extending deadlines and efforts to resolve the dispute. Regulators said their investigation is still in the fact-finding phase and has not concluded that ISS violated federal securities laws.
ISS argued in communications with the SEC that the subpoena raises First Amendment concerns and could expose ISS and its customers to retaliation over voting activities.
ISS did not immediately respond to CNBC’s request for comment.
The lawsuit comes amid a broader push by the Trump administration to increase oversight of proxy advisers, which provide institutional investors with research and recommendations on shareholder votes on issues such as board elections, executive compensation and shareholder proposals.
President Donald Trump signed an executive order in December directing the SEC to review its rules and guidance for proxy voting advisers, enforce the anti-fraud provisions of securities laws, and consider additional disclosure and regulatory requirements.
The order specifically named ISS’s competitor Glass Lewis, which the White House said together control more than 90% of the proxy advisory market.
ISS is registered with the SEC as an investment advisor. The SEC is asking the court to order the company to comply with outstanding subpoenas.
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