WisdomTree Fined $4M by SEC for ESG Compliance Failures

The investment firm settled charges without admitting fault, following SEC findings of misleading ESG fund marketing.

WisdomTree Asset Management agreed to pay a $4 million penalty to the SEC for compliance failures related to its ESG-marketed funds.
From March 2020 to November 2022, the SEC found that WisdomTree's ESG funds invested in companies involved in fossil fuels and tobacco, contrary to their stated criteria.
The SEC order highlighted that WisdomTree lacked adequate policies to screen out companies involved in controversial activities.
The funds in question were liquidated in February 2024, with an average of $119 million in assets under management during their operation.
WisdomTree neither admitted nor denied the SEC's findings but agreed to a cease-and-desist order and censure.