The Securities and Exchange Commission filed a subpoena enforcement action on September 4, 2026, in the Eastern District of Pennsylvania, after ISS partially refused to produce documents related to its proxy voting operations. The SEC is asking a federal court to compel the firm to hand over its voting recommendations, internal methodologies, and compliance records, as part of a broader examination launched in March 2026. ISS cited the First Amendment to refuse this request, arguing that full disclosure could violate its constitutional rights and expose clients to retaliation from corporations unhappy with their votes. ISS controls approximately 90 percent of the proxy advisory market alongside its competitor Glass Lewis, meaning its recommendations influence trillions of dollars in institutional assets. No misconduct allegations have been made against ISS at this stage, although the firm previously paid 300,000 dollars in 2013 to settle charges related to inadequate safeguards around client proxy voting information.
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