BNY Mellon unit pays $1.5 million over ESG fund misstatements -U.S. SEC
By Katanga Johnson
WASHINGTON (Reuters) -The U.S. Securities and Change Fee (SEC) on Monday stated BNY Mellon Funding Adviser had paid $1.5 million to resolve fees it misstated environmental, social and governance (ESG)funding insurance policies for some mutual funds it managed.
The SEC stated that from July 2018 to September 2021, BNY Mellon Funding Adviser represented or implied in varied statements that each one investments within the funds had undergone an ESG high quality evaluation, although that was not all the time the case.
“Registered funding advisers and funds are more and more providing and evaluating investments that make use of ESG methods or incorporate sure ESG standards, partially to satisfy investor demand for such methods and investments,” stated Sanjay Wadhwa, Deputy Director of the SEC’s Division of Enforcement and head of its Local weather and ESG Process Power.
“Right here, we allege that BNY Mellon Funding Adviser didn’t all the time carry out the ESG high quality evaluation that it disclosed utilizing as a part of its funding choice course of for sure mutual funds it suggested.”
The agency didn’t admit or deny the SEC’s findings, the SEC stated, however agreed to a cease-and-desist order, a censure, and to pay the penalty, the company stated.
“BNY Mellon Funding Adviser is happy to resolve this matter regarding sure statements it made in regards to the ESG evaluation course of for six U.S. mutual funds,” a spokesperson stated in an announcement, including that the agency takes significantly its regulatory and compliance duties.
BNY Mellon Funding Adviser additionally “promptly undertook remedial acts and cooperated with Fee workers in its investigation,” the SEC stated.
(Reporting by Michelle Value and Katanga Johnson; Modifying by Mark Porter and David Gregorio)
