The US Securities and Exchange Commission (SEC) has been increasingly vocal about its view that environmental, social and governance (ESG) disclosures can be material to investors. To help combat ESG disclosure violations, the SEC created a Climate and Risk Task Force within the Division of Enforcement. As a result of the Task Force’s efforts, on May 23, 2022, the SEC charged BNY Mellon Investment Adviser, Inc. (BNYMIA) for material misstatements and omissions about a sub-adviser’s ESG quality reviews. Without admitting or denying the allegations, BNYMIA settled the matter by agreeing to pay a US$1.5 million penalty.
Read the full update here.