SEC Charges Invesco Advisers for Making Misleading Statements About Supposed Investment Considerations
summary
Invesco Advisers, Inc. settled SEC charges for misleading investors about its ESG asset integration by paying a $17.5 million civil penalty.
paragraph
Invesco Advisers, Inc. was charged with willfully violating the Investment Advisers Act of 1940 for misstating its ESG integration capabilities. Between 2020 and 2022, the firm claimed 70% to 94% of assets were ESG-integrated, failing to exclude passive ETFs that lacked ESG considerations. To settle the matter, Invesco agreed to a $17.5 million civil penalty and a cease-and-desist order.
narrative
The SEC charged Invesco Advisers, Inc. for making misleading statements regarding the percentage of its assets under management that integrated ESG factors. From 2020 to 2022, Invesco marketed that 70% to 94% of its assets were ESG-integrated, but these figures improperly included passive ETFs that did not consider ESG factors. Additionally, the firm lacked formal written policies to define what ESG integration actually entailed. To resolve charges of willfully violating the Investment Advisers Act of 1940, Invesco agreed to a $17.5 million civil penalty and a cease-and-desist order. The settlement was reached without the firm admitting or denying the SEC’s specific findings. This enforcement action highlights the importance of transparency in capitalizing on ESG investing trends.
Classified investment-adviser-fraud(confidence 95%). EDGAR detection: forms ADV/ADV-E/ADV-W/Form D· recall 33% / precision 13%. detection rule →
Parties
invesco advisers, inc.robert k. gordonSanjay Wadhwathe sec’s investigationthe sec’s orderthe securities and exchange commission
Keywords
invescosecinvestmentinvesco advisersmaking misleadingmisleading statementsstatements aboutorder invescoesgorderadvisersassetsmanagementadvisers makingabout supposed
Exhibits & Attached Documents (1)
Extracted insights
Dollar amounts 1
- $17.50M $17.5 million $10M–$100M
Entities 6
- company invesco advisers, inc.
- person robert k. gordon
- person Sanjay Wadhwa
- agency the sec’s investigation
- agency the sec’s order
- agency the securities and exchange commission
Triples 14
- The Securities and Exchange Commission charged Invesco Advisers, Inc.
- Invesco Advisers, Inc. agreed to pay a $17.5 million civil penalty
- The SEC’s order found Invesco lacked any written policy defining ESG integration
- Sanjay Wadhwa said Invesco saw commercial value in claiming that a high percentage of company-wide assets were ESG integrated
- The order charges Invesco with willfully violating the Investment Advisers Act of 1940
- Invesco agreed to cease and desist from violations of the charged provisions
- Invesco agreed to be censured
- Invesco agreed to pay the aforementioned $17.5 million civil penalty
- The SEC’s investigation was conducted by Jonathan T. Menitove of the Asset Management Unit
- The SEC’s investigation was conducted by Richard Rodriguez of the Atlanta Regional Office
- The SEC’s investigation was conducted by Robert K. Gordon
- The SEC’s investigation was supervised by Ruth Hawley of the San Francisco Regional Office
- The SEC’s investigation was supervised by Stephen E. Donahue of the Atlanta Regional Office
- The SEC’s investigation was supervised by Andrew Dean and Corey Schuster of the Asset Management Unit
PDF (from attached: pdf)
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Extracted body text (1,896c)
The Securities and Exchange Commission today charged Invesco Advisers, Inc. for making misleading statements about the percentage of company-wide assets under management that integrated environmental, social, and governance (ESG) factors in investment decisions. The Atlanta-based registered investment adviser agreed to pay a $17.5 million civil penalty to settle the SEC’s charges. According to the SEC’s order, from 2020 to 2022, Invesco told clients and stated in marketing materials that between 70 and 94 percent of its parent company’s assets under management were “ESG integrated.” However, in reality, these percentages included a substantial amount of assets that were held in passive ETFs that did not consider ESG factors in investment decisions. Furthermore, the SEC’s order found that Invesco lacked any written policy defining ESG integration. “As stated in the order, Invesco saw commercial value in claiming that a high percentage of company-wide assets were ESG integrated. But saying it doesn’t make it so,” said Sanjay Wadhwa, Acting Director of the SEC’s Division of Enforcement. “Companies should be straightforward with their clients and investors rather than seeking to capitalize on investing trends and buzzwords.” The order charges Invesco with willfully violating the Investment Advisers Act of 1940. Without admitting or denying the order’s findings, Invesco agreed to cease and desist from violations of the charged provisions, be censured, and pay the aforementioned $17.5 million civil penalty. The SEC’s investigation was conducted by Jonathan T. Menitove of the Asset Management Unit and Richard Rodriguez of the Atlanta Regional Office with assistance from Robert K. Gordon. It was supervised by Ruth Hawley of the San Francisco Regional Office, Stephen E. Donahue of the Atlanta Regional Office, and Andrew Dean and Corey Schuster of the Asset Management Unit.
OCR text (1,896c · html-text · 99% conf)
The Securities and Exchange Commission today charged Invesco Advisers, Inc. for making misleading statements about the percentage of company-wide assets under management that integrated environmental, social, and governance (ESG) factors in investment decisions. The Atlanta-based registered investment adviser agreed to pay a $17.5 million civil penalty to settle the SEC’s charges. According to the SEC’s order, from 2020 to 2022, Invesco told clients and stated in marketing materials that between 70 and 94 percent of its parent company’s assets under management were “ESG integrated.” However, in reality, these percentages included a substantial amount of assets that were held in passive ETFs that did not consider ESG factors in investment decisions. Furthermore, the SEC’s order found that Invesco lacked any written policy defining ESG integration. “As stated in the order, Invesco saw commercial value in claiming that a high percentage of company-wide assets were ESG integrated. But saying it doesn’t make it so,” said Sanjay Wadhwa, Acting Director of the SEC’s Division of Enforcement. “Companies should be straightforward with their clients and investors rather than seeking to capitalize on investing trends and buzzwords.” The order charges Invesco with willfully violating the Investment Advisers Act of 1940. Without admitting or denying the order’s findings, Invesco agreed to cease and desist from violations of the charged provisions, be censured, and pay the aforementioned $17.5 million civil penalty. The SEC’s investigation was conducted by Jonathan T. Menitove of the Asset Management Unit and Richard Rodriguez of the Atlanta Regional Office with assistance from Robert K. Gordon. It was supervised by Ruth Hawley of the San Francisco Regional Office, Stephen E. Donahue of the Atlanta Regional Office, and Andrew Dean and Corey Schuster of the Asset Management Unit.