ISS Sues SEC Over Guidance Targeting Proxy Advisers (2)

Institutional Shareholder Services Inc. is pushing back against changes to the regulatory regime for proxy advisers with a new lawsuit challenging what it calls “unlawful” guidance from the Securities and Exchange Commission.

The SEC should pull the guidance it issued in August, according to the complaint ISS filed in the U.S. District Court for the District of Columbia Oct. 31. The guidance came after corporate calls to add oversight for proxy firms.

The guidance tells proxy advisers to give more details about their methods and sources of information. It also warns the firms that their advice on how institutional investors ...