The Order does not address the responsibility that the investment advisory clients of ISS may have had in protecting their client proxy voting information. Investment advisers, however, should consider instituting safeguards to protect their material, nonpublic information when they engage proxy advisers or other third party service providers. As a best practice, investment advisers should include confidentiality provisions in their service provider agreements. Such confidentiality provisions should require the service provider to safeguard an investment adviser’s material, nonpublic information, such as proxy voting information, and limit access to that information to need-to-know employees of the service provider.
For additional information about the Order, read more.
