A recent enforcement action by the SEC against WisdomTree Asset Management underscores that the agency remains committed to ESG oversight, despite disbanding its dedicated ESG Task Force. WisdomTree faced penalties for misstatements regarding its ESG funds, which claimed to exclude companies involved in fossil fuels and tobacco but failed to fully meet those claims. This case highlights that ESG misstatements and compliance lapses will continue to draw attention from the SEC, emphasizing the importance of accurate disclosures and strict internal controls in ESG-related activities.

WisdomTree has agreed to pay a civil penalty of $4 million and comply with a cease-and-desist order to settle the matter. Additionally, the company has consented to the SEC’s order, which finds the allegations to be valid without admitting or denying them.