BNY Mellon Investment Adviser to Pay a $1.5 Million Penalty

On Monday, the US Securities and Exchange Commission (SEC Securities and Exchange Commission (SEC) The Securities and Exchange Commission (SEC) is one of the most widely known independent authorities in the United States. The SEC has a wide range of responsibilities, helping police markets and curbing against abuse. This includes enforcing federal securities laws, proposing securities rules, and regulating the US’ stock and options exchanges.As one of the paramount regulatory authorities in the US, the SEC is responsible for the oversight of public companies in the aforementioned segments.Wha The Securities and Exchange Commission (SEC) is one of the most widely known independent authorities in the United States. The SEC has a wide range of responsibilities, helping police markets and curbing against abuse. This includes enforcing federal securities laws, proposing securities rules, and regulating the US’ stock and options exchanges.As one of the paramount regulatory authorities in the US, the SEC is responsible for the oversight of public companies in the aforementioned segments.Wha Read this Term) announced that it had charged BNY Mellon Investment Adviser, Inc. for misstatements and omissions about Environmental, Social and Governance (ESG) considerations in making investment decisions for certain mutual funds that it managed.

According to the press release, BNY Mellon Investment Adviser agreed to pay a $1.5 million penalty as part of the settlement Settlement Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Read this Term. The SEC commented that BNY Mellon Investment Adviser misrepresented or implied in various statements that all investments with respect to environmental, social and governance quality had been reviewed, even though this was not always the case. In the order, it is noted that certain funds did not receive an ESG quality review score when they utilised funds in numerous investments.

The SEC entered an order found that BNY Mellon Investment Adviser violated Sections 206(2) and 206(4) of the Investment Advisers Act of 1940 and Rules 206(4)-7 and 206(4)-8, as well as Section 34(b) of the Investment Company Act.

Penalty Details

BNY Mellon Investment Adviser agreed to a cease-and-desist order, a censure and a $1.5 million penalty without admitting or denying the SEC’s findings. According to the order, BNY Mellon Investment Adviser quickly implemented remedial measures and cooperated with the SEC staff during its investigation.

“Registered investment advisers and funds are increasingly offering and evaluating investments that employ ESG strategies or incorporate certain ESG criteria, in part to meet investor demand for such strategies and investments. Here, we allege that BNY Mellon Investment Adviser did not always perform the ESG quality review that it disclosed using as part of its investment selection process for certain mutual funds it advised,” Sanjay Wadhwa, the Deputy Director of the SEC’s Division of Enforcement and Head of its Climate and ESG Task Force, said.

Adam S. Aderton, the Co-Chief of the SEC Enforcement Division’s Asset Management Unit and a member of the Task Force, highlighted: “Investors are increasingly focused on ESG considerations when making investment decisions. As this action illustrates, the Commission will hold investment advisers accountable when they do not accurately describe their incorporation of ESG factors into their investment selection process.”