“The enforcement division of the Securities and Exchange Commission has issued formal requests, including subpoenas, to a number of investment firms over their sustainable investment advertising practices. This escalation shows the SEC’s heightened scrutiny on environmental, social and governance funds.

A significant point of concern for the SEC includes mainstream investment funds transitioning into ESG-focused entities. Additionally, there’s interest in funds marketed both in the U.S. and Europe that may possess similar investment strategies, assets or management teams, yet provide varying levels of disclosure depending on the region.”

[COMMENTARY] For many fund managers switching to, and labeling, old or new funds with an ESG or sustainable tag was easy and meant they could charge much higher fees!
SEC hits ESG funds with subpoenas, by Matthew Sellers, August15, 2023, InvestmentNews, USA.