Tuesday, June 1, 2021
On April 9, 2021, the SEC’s Division of Examinations (formerly the Office of Compliance Inspections and Examinations) issued a risk alert highlighting the staff’s observations from recent examinations of investment advisers, registered investment companies and private funds offering
environmental, social and governance (ESG) products and services. In light of the increased investor demand for ESG products and services and the variability of ESG definitions and terms, the risk alert elaborates on the focus of future examinations, as well as on deficiencies and best practices observed in past examinations.
The staff stated that future examinations of firms engaging in ESG investing will focus on, among other things, the following: