By Jessica DiNapoli

NEW YORK (Reuters), The National Association of Manufacturers, a business organization sued Wednesday’s U.S. Securities Regulator for not enforcing a Trump-era rule that restricted companies that offer investors advice on voting in corporate elections.

The Securities and Exchange Commission put restrictions on proxy advisors last year by mandating that they allow companies to see their recommendations and declare conflicts of interest. However, the new Democratic leadership of the agency has stated that they will be reviewing the rule and won’t enforce it.

Linda Kelly, NAM’s general counsel, stated that this is an illegal reversal to the Trump-era rule.

This is the first significant showdown between corporate interest and the SEC as it has been led by Gary Gensler.

For years, U.S. business interests have pushed for the crackdown against proxy advisors. They have the power and influence to swing votes on corporate director elections as well on hot-button topics like climate change, gender equality, lobbying, and gender pay equity.

Kelly stated that NAM filed the suit with Natural Gas Services Group Inc (NYSE:) Inc in Texas’ western district. Kelly asked the SEC for enforcement of the rule.

Kelly stated that members were getting ready to prepare for the next proxy season, which refers to corporate annual meetings scheduled to begin in early 2019.

“This whipsawing of the regulatory process undermints the predictability that regulated entities look for, and the capital market need.”

Kelly stated that services were hampered in their attempts to rectify information provided by proxy advisors. Kelly also said that the company joined NAM to face the legal challenge.

Proxy advisers Institutional Shareholder Services Inc and Glass, Lewis & Co have said that the Trump-era rule would delay the advice they send out to investors and limit their independence.