Published on Nov 13th, 2024 |

VIGILANT INSIGHTS

Introduction

The SEC recently charged a Firm $17,500,000 for misleading statements about the role of ESG in their investment strategies.

In a recent FundFire article, Vigilant Director, Maxwell Baker, Esq., provided additional insight into the discussion of what these enforcements could mean going forward.

Maxwell Baker Insights

Maxwell Baker Insights

The debate stems from the political realities surrounding the discussion of ESG from which some argue that the new administration might shift their focus elsewhere. Others argue that ESG may still be an examination priority, albeit with different motives. Regardless, Maxwell sees the recent enforcements as evidence that ESG disclosures are going to continue to be scrutinized.

Exaggerated and misleading claims will bring enforcement actions when discovered, Maxwell says. For this reason, Firms should continue to evaluate the way they advertise and discuss ESG with their investors.

Vigilant's Conclusion

Vigilant’s Conclusion

Vigilant is prepared for any changes that may occur in the regulatory climate in 2025.

It is vital that Firms continue to evaluate their compliance programs and take a proactive approach in identifying weaknesses that could bring potential enforcement action.

Marketing materials and documents provided to investors should be assessed for their accuracy.

If you have any questions about the recent enforcements, or how to prepare your compliance program for 2025, please reach out to us today.

Contact Us