Reuters reports that On Tuesday, November 22, the US Securities and Exchange Commission (SEC) charged Goldman Sachs Asset Management with failing to comply with policies and procedures related to environmental, social (ESG) and investments others and a $4 million fine to the company.
The US SEC said in a statement that the fine was imposed because Goldman Sach Asset Management “failed the policies and procedures related to the two mutual funds. Including funds whose marketing strategy is “Investing in Environmental, Social and Governance (ESG)”
The SEC also said Goldman Sachs Asset Management agreed to pay a $4 million fine, without admitting or denying any wrongdoing.
In a statement that Between April 2017 and February 2020, the company failed a number of policies and procedures related to the analysis of ESG data used by investment teams in selecting and monitoring securities.
“From April 2017 until June 2018, the company did not have a written policy and procedure for an ESG analysis of a single product. and when policies and procedures are established It cannot be consistently followed before February 2020,” the US SEC said.
in recent years investors around the world have poured money into ESG-focused funds based on their interest in issues such as: climate change Or greater employee diversity, but this year investors have taken net money from these funds .
At the same time, US and European regulators have only begun to formalize rules for information disclosure. and claim it is an ESG fund.
Following the SEC’s statement, Goldman Sach issued a follow-up statement stating that the company is happy to resolve this matter. It relates to historical policies and procedures applicable to Goldman Sachs Asset Management’s three Underlying Equity portfolios.
