WisdomTree agrees to settle US$4mil in SEC fines

WisdomTree used data from a third-party vendor that failed to screen out all companies, the SEC said. — Reuters

NEW YORK: Advisory firm WisdomTree Asset Management Inc has agreed to pay US$4mil to settle US Securities and Exchange Commission (SEC) allegations that it failed to deliver on its promise to create exchange-traded funds that avoided investments in fossil fuels or tobacco.

WisdomTree touted three funds from March 2020 to November 2022 with an environmental, social and governance strategy that excluded certain “controversial products or activities” according to the regulator’s cease and desist order on Monday.