Credit: Blue Planet Studio/Adobe Stock The SEC's Shot Across the Bow on 'Greenwashing' in ESG Funds
Just days before issuing proposed rule amendments regarding the use of environmental, social, and governance (ESG) factors in mutual funds, the SEC gave a preview of its enforcement agenda with the settlement and $1.5 million penalty against a mutual fund adviser for alleged misstatements and omissions in fund disclosures regarding ESG considerations. The settlement suggests that enforcement agenda will be aggressive and far-reaching.
June 15, 2022 at 10:00 AM
6 minute read
Just two days before issuing proposed rule amendments regarding the use of environmental, social, and governance (ESG) factors in mutual funds, the Securities and Exchange Commission (SEC) gave a vivid preview of its ESG fund enforcement agenda. On May 23, the SEC announced settled charges and a $1.5 million penalty against a mutual fund adviser for alleged misstatements and omissions in fund disclosures regarding ESG considerations. The SEC found that the adviser represented that investments in the funds had undergone an ESG quality review but in fact did not have ESG quality review scores for all investments held by the funds in question during a three-year period.
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