REGULATORY DEVELOPMENTS SEC RAISES CONCERNS ABOUT MISLEADING ESG PRACTICES, HIGHLIGHTS POTENTIAL VIOLATIONS On April 9, the SEC’s Division of Examinations (Division) issued a Risk Alert regarding the Division’s review of ESG investing. The Risk Alert provides insight into the SEC’s perspective on the “potential violations” referred to in the SEC’s announcement, released on March 4, 2021, of an ESG Task Force in the SEC’s Division of Enforcement. The Risk Alert focuses on the accuracy and consistency of disclosures, marketing claims and other public statements; the application of ESG approaches throughout firms; the adequacy of ESG policies and procedures; compliance oversight; and the sufficiency of ESG-related documentation. Read the client alert to learn more.