In this article, you will get all information regarding SEC Fines Goldman Sachs AM $4m Over Lax ESG Policies – UK Prime News
The settlement, which involves two mutual funds and one separately managed account strategy, argued that GSAM had “several policies and procedures failures” in its ESG research.
The SEC said that the firm did not have any written policies and procedures for ESG research in one of its products between April 2017 and June 2018, and even after they were established, failed to consistently follow them until February 2020.
Meanwhile, it shared information about its policies and procedures with third parties, such as intermediaries, while failing to follow them consistency.
The SEC gave the example of GSAM’s policy to require personnel to fill out an ESG questionnaire for each firm it planned to invest in, which was often not completed until after the firm had already been selected and frequently relied on older ESG research.
Without admitting or denying the SEC’s findings, GSAM agreed to a cease-and-desist order, a censure, and the $4m penalty.
“In response to investor demand, advisers like Goldman Sachs Asset Management are increasingly branding and marketing their funds and strategies as ‘ESG,’” said Sanjay Wadhwa, deputy director of the SEC’s Division of Enforcement and head of its Climate and ESG Task Force.
“When they do, they must establish reasonable policies and procedures governing how the ESG factors will be evaluated as part of the investment process, and then follow those policies and procedures, to avoid providing investors with information about these products that differs from their practices.”
“Today’s action reinforces that investment advisers must develop and adhere to their policies and procedures over their investment processes, including ESG research, to ensure investors receive the advisory services they would expect to receive from an ESG investment,” added Andrew Dean, co-chief of the Enforcement Division’s Asset Management Unit.
SEC Fines Goldman Sachs AM $4m Over Lax ESG Policies – UK Prime News
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