Invesco Advisors agreed to pay $17.5 million to the Securities and Exchange Commission (SEC) to settle allegations that the company misled investors about the level of its assets that included environmental, social, and governance (ESG) factors.
On November 8, 2024, the Securities and Exchange Commission (SEC) announced charges against Invesco Advisers, Inc. for misleading clients about the extent of its environmental, social, and governance (ESG) integrated assets. The Atlanta-based investment adviser has agreed to a $17.5 million settlement to resolve the charges.
The SEC found that Invesco also lacked a formal written policy defining ESG integration, despite previous warnings to firms about the importance of clear ESG guidelines. This case highlights the SEC’s increased scrutiny on firms under its updated marketing rule, particularly those making unsubstantiated ESG claims.
The SEC’s investigation revealed that from 2020 to 2022, Invesco reported that 70-94% of its assets were “ESG integrated.” However, this figure included passive ETFs that did not consider ESG factors.
Sanjay Wadhwa, Acting Director of the SEC’s Division of Enforcement, criticized Invesco’s actions, highlighting the importance of transparency and cautioning against using “buzzwords” to attract investors.
Invesco has agreed to cease and desist from further violations, undergo censure, and pay the $17.5 million penalty without admitting or denying the SEC’s findings.
Source: SEC
