Defendant Name:
WisdomTree Asset Management, Inc.
Defendant Type:
Subsidiary of Public Company
Public Company Parent:
WisdomTree, Inc.
SIC Code:
6211
CUSIP:
97717P10
Document Reference:
IA-6753
Document Details
Legal Case Name
In the Matter of WisdomTree Asset Managment, Inc.
Document Name
rder Instituting Administrative and Cease-and-Desist Proceedings, Pursuant to Sections 203(e) and 203(k) of the Investment Advisers Act of 1940, and Section 9(f) of the Investment Company Act of 1940, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order
Document Date
21-Oct-2024
Document Format
Administrative Proceeding
Allegation Type
Investment Advisers/Investment Companies
Document Summary
On October 21, 2024, the SEC instituted settled administrative and cease-and-desist proceedings against WisdomTree Asset Management, Inc., stating: "From March 2020 until November 2022 (the “Relevant Period”), WisdomTree, a registered investment adviser to three exchange-traded funds (the “ESG Funds”) that it marketed as incorporating environmental, social, and governance (“ESG”) factors, misstated to the ESG Funds’ board of trustees (“Board”) and investors that the ESG Funds would not invest in companies that were “involved in certain controversial products or activities,” including “fossil fuels” and “tobacco.” In reality, the ESG Funds invested in the securities of companies during the Relevant Period that were involved in such activities, including coal mining and the transportation of coal, natural gas extraction and distribution, and the retail sale of tobacco products."
Disgorgement & Penalty Information
Resolutions
Cease and Desist Order
Censured
Monetary Penalties:
Civil Penalty
Individual:
$4,000,000.00
Shared:
