The U.S. Securities and Exchange Commission on Tuesday fined a $4 million division of Goldman Sachs on Tuesday, saying it misled customers about investments advertised as environmentally friendly.
The the charges included “failures of policies and procedures comprising two mutual funds and one separately managed account strategy marketed as environmental, social and governance (ESG) investments,” the SEC said in a statement.
The financial giant neither admitted nor denied paying the fine, the SEC noted.
“Goldman Sachs Asset Management, LP is pleased to resolve this matter,” the company said in a statement, declaring that it is “committed to pursuing best practices across all its portfolios for sustainable, long-term value creation that helps clients meet their investment needs.” “.
According to the SEC, between April 2017 and February 2020, Goldman Sachs Asset Management took its time to develop written policies and procedures for ESG – but did not follow them.
“Today’s action confirms that investment advisers must develop and adhere to their policies and procedures for investment processes, including ESG research, to ensure investors receive the advisory services they would expect from ESG investments,” said Andrew Dean, co-chair of the Asset Management Unit of the Enforcement Division. sec.
The ESG investment movement aims to consider environmental, social and governance issues when deciding how to invest public funds, such as pension plans. The move has gained popularity in recent years with institutional investors such as university and foundation funds.
From News Wire Services
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