SEC Charges Invesco for Making Misleading Statements about ESG Investment Considerations

The Securities and Exchange Commission (SEC) charged Invesco Advisers for making misleading statements regarding the total percentage of ESG integrated investments held in company-wide assets under management. Between 2020 and 2022, the SEC order stated that Invesco claimed in marketing materials that between 70 and 90 percent of the parent company’s assets were “ESG integrated” which the Commission found untrue. Additionally, the Commission found that Invesco had no written policies as to what constitutes ESG integration.

Sanjay Wadhwa, Acting Director of the SEC’s Division of Enforcement stated, “Companies should be straightforward with their clients and investors rather than seeking to capitalize on investing trends and buzzwords.” He noted that when it comes to ESG investments, “saying it doesn’t make it so.” Invesco Advisers agreed to pay a $17.5 million civil penalty to settle the SEC’s charges. The Invesco settlement follows the recent WisdomTree settlement, and others as the Commission continues to review advisers’ ESG investment policies.

Click here to read the Commission’s press release covering the charges.