Torsten Asmus
- Securities and Exchange Commission staff is recommending enforcement action against the WisdomTree’s (NYSE:WT) asset management arm for alleged violations related to three exchange-traded funds that pursued ESG-focused investment strategies, the company disclosed on Tuesday.
- The recommendation may involve a civil injunctive action that may seek remedies including injunctions, disgorgement, pre-judgment interest, civil money penalties and other relief, the company said.
- WisdomTree (WT) noted that WisdomTree Trust’s board of trustees approved the liquidation of the ESG funds in December 2023 for various reasons, including the lack of investor demand. Each ESG fund completed its liquidation in February 2024. During the time that they operated, the ESG ETFs had, in aggregate, average assets under management of $119M.
- “A Wells Notice is neither a formal charge of wrongdoing nor a final determination that the recipient has violated any law,” the company said.
- WisdomTree Asset Management maintains that its actions have complied with all applicable laws and regulations. The Wells notice process will allow it the opportunity to respond to the staff’s position.
- WisdomTree (WT) stock rose 0.3% in Tuesday premarket trading.