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Proxy Firm ISS Agrees to Wait for Final Rule in Suit Against SEC

Jan. 17, 2020, 10:57 PM

Institutional Shareholder Services Inc. has agreed to put its lawsuit against the Securities and Exchange Commission on hold until a rule targeting proxy advisory firms is finalized.

ISS is challenging the legality of the commission’s recent proxy firm guidance and how it was issued. The SEC suggested putting the suit on pause while it finishes writing a related rule on proxy advisers, according a Friday filing in the U.S. District Court for the District of Columbia.

Firms like ISS and Glass, Lewis & Co. offer institutional investors advice on voting their shares in public companies. These firms have faced scrutiny ...