ISS Settles SEC Suit Alleging Proxy-Voting Data Breach

Law360, New York (May 23, 2013, 2:50 PM EDT) -- Institutional Shareholder Services Inc., the nation’s largest proxy adviser firm, has agreed to pay $300,000 to settle claims by the U.S. Securities and Exchange Commission that it failed to prevent an employee from selling confidential information about client votes, the agency said Thursday.

The SEC filed and settled an administrative suit alleging Rockville, Md.-based ISS willfully violated a federal law requiring investment advisers to establish and enforce policies designed to prevent the misuse of clients’ nonpublic proxy voting information. The suit is the first ever by...
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