SEC Finds Some Funds That Say They’re Green Really Aren’t
- Regulator signals firms may be violating disclosure rules
- Agency’s examinations unit releases report on inspections
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U.S. regulators have some bad news for investors who are trying to do good things with their money: that ESG fund might not really be all that green or socially conscious.
There’s a high risk that some money managers are promoting their funds as so-called environmental, social and governance products when the reality is quite different, according to a report released Friday by the Securities and Exchange Commission’s examinations unit. Certain mis-characterizations were so bad that the agency signaled firms could be violating securities laws.