SEC's 1st Proxy Firm Action Hints At New Compliance Focus

Law360, New York (May 23, 2013, 8:04 PM EDT) -- The U.S. Securities and Exchange Commission's first-ever suit against a proxy advisory firm Thursday may have targeted Institutional Shareholder Services Inc. for just a $300,000 fine, but attorneys say the move also sent a powerful compliance message to industry peers on protecting client voting data.

The SEC on Thursday 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.

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