Investment Advisers

Subscribe to Investment Advisers via RSS

When it became public a few weeks ago that the SEC had disbanded its Climate and ESG Task Force, the SEC emphasized that it was not taking its eye off of ESG-related issues. In the latest example of the SEC’s continuing ESG-related monitoring, late last week the ESG announced that it had settled charges against investment adviser Invesco Advisers. The agency alleged that the company had made misleading statements about the percentage of company-wide assets under management that integrated ESG factors in investment decisions. In settling the charges, the company agreed to pay a $17.5 million civil penalty. The SEC’s November 8, 2024, press release about the charges and the settlement can be found here. The SEC’s November 8, 2024, cease-and-desist order in the matter can be found here.Continue Reading SEC Charges Investment Adviser With ESG-Related Misleading Statements

The SEC wants everyone to know that it is watching what the companies and firms it regulates are saying about their use of Artificial Intelligence (AI). SEC Chair Gary Gensler set the stage in a speech he made last December in which he warned companies about “AI Washing” – that is, making unfounded AI claims to the public. Now the agency has brought settled enforcement actions against two investment advisers for making allegedly false statements about their use of AI technology. As if the enforcement actions themselves were not enough to send the message that the SEC is on the AI beat, the agency also released a video statement from Gensler emphasizing the agency’s AI-related concerns.

The SEC’s March 18, 2024, press release about the enforcement actions can be found here. The SEC’s March 18, 2024, Administrative Order against Delphi (USA) Inc. can be found here. The SEC’s March 18, 2024, Administrative Order against Global Predictions, Inc. can be found here. The link to Gensler’s March 18, 2024, video can be found here.Continue Reading SEC Hits Two Investment Advisers With “AI Washing” Enforcement Actions