SEC Fines WisdomTree $4M for Misleading ESG Fund Practices

The SEC has charged WisdomTree Asset Management for making misstatements regarding its ESG investment criteria, claiming its funds would avoid companies involved in fossil fuels and tobacco. However, between March 2020 and November 2022, the funds invested in such companies, failing to meet their advertised standards. The SEC found that WisdomTree relied on inadequate third-party data and lacked proper screening procedures. As a result, WisdomTree agreed to a cease-and-desist order and will pay a $4 million penalty, highlighting the importance of transparency and compliance in the ESG investment space. Resources: https://esgnews.com/sec-fines-wisdomtree-4m-for-misleading-esg-fund-practices/