04.14.21
SEC Will Not Assess Merit of ESG Investments: Peirce
by: Mark, Jr. Schoeff
SEC Commissioner Hester Peirce said the agency will not try to determine whether ESG investing is good or bad, but rather will focus on whether investment advisors are following the ESG strategies they’re promoting. In a statement released Monday, Peirce provided her interpretation of a recent SEC risk alert on ESG investing that warned advisors, investment companies, and funds about compliance shortcomings. The alert said recent examinations have found instances of misleading claims as well as inadequate policies, procedures and documentation regarding ESG products and portfolios. “The staff’s role is not to second-guess investment decisions through an SEC-created ESG scoring system; rather, it is to understand whether firms are adhering to their own ESG claims,” Peirce said.
Read the full article on InvestmentNews.