Trump’s Next SEC Faces Hurdles Saving Contested Proxy Firm Curbs

A court is preparing to rule on the legality of business-backed restrictions that President-elect Donald Trump’s first SEC imposed on firms guiding shareholder voting decisions.

But don’t expect his new Securities and Exchange Commission to defend the 2020 proxy advisory firm rules in the pending legal challenge, agency observers said. The SEC also likely will avoid any major rulemaking in the space while the litigation continues, they said.

The rules target firms like Institutional Shareholder Services Inc. and Glass, Lewis & Co., which cater to investment funds seeking outside advice on how to vote their shares at companies’ annual meetings. ...