Skip to main content

Written by Robert Quinn
Founder & CEO

After a flurry of activity in February, the month of May sees the SEC showing some leadership on the ESG agenda. On May 25, 2022, the SEC has proposed amendments to promote “consistent, comparable, and reliable information for investors concerning funds and advisers’ incorporation of environmental, social, and governance (“ESG”) factors”.

The proposed changes would amend rules and reporting forms and apply to certain registered investment advisers, advisers exempt from registration, registered investment companies, and business development companies, and seek to categorize ESG strategies broadly, requiring specific disclosures in fund prospectuses, annual reports, and adviser brochures (including the Form ADV Part 1A).

The proposed categories so far include:

  • Funds representing that they focus on environmental factors generally would be required to disclose the greenhouse gas emissions associated with portfolio investments
  • Funds claiming to achieve a specific ESG impact would be required to describe the specific impact being sought while summarizing progress made on achieving said impacts
  • Funds using proxy voting as a significant means of implementing an ESG strategy would be required to disclose their proxy voting information

The comment period will remain open for 60 days after publication in the Federal Register.

Days before the new rules were proposed, the SEC charged BNY Mellon Investment Adviser, Inc. (“BNY”) for misstatements and omissions about ESG considerations in making investment decisions for certain mutual funds it managed. BNY agreed to a $1.5 million penalty to settle charges.

The SEC’s order alleges that, from July 2018 to September 2021, BNY falsely “represented or implied” in multiple disclosures that all investments in the mutual funds had undergone an ESG quality review. The order finds that numerous investments held did not have an ESG quality review score as of the time of investment. The order finds that BNY violated Sections 206(2) and 206(4) of the Investment Advisers Act of 1940 and Rules 206(4)-7 and 206(4)-8, and Section 34(b) of the Investment Company Act.

Adam S. Aderton, Co-Chief of the SEC Enforcement Division’s Asset Management Unit said in the SEC’s press release that the SEC will “hold investment advisers accountable when they do not accurately describe their incorporation of ESG factors into their investment selection process”.

The SEC’s action on ESG follows a similar line that the regulator has taken on cybersecurity – false and misleading disclosures on cyber incidents will be met with scrutiny and potential enforcement actions. We note that the SEC Division of Enforcement’s Climate and ESG Task Force was formed in March 2021, where its mandate includes disclosure and compliance issues relating to investment advisers’ and funds’ ESG strategies. We expect to see more charges like this as ESG becomes more embedded in the fund management sector.


All courses are accessible on our bespoke web or app platforms immediately upon purchase.



All courses are delivered through fully-automated, interactive online visual solutions.



Courses cost from as little as £20 per Learner per Course, or £6 per Learner on Subscription.



A certificate is issued on successful completion of all courses for compliance-filing and all UK courses are CPD-certified.



All courses include regular ‘Check Your Knowledge’ sections throughout and an end-of-course Quiz.



Courses take from 30 to 90 minutes to complete and can be viewed and completed in multiple sittings.


Purchasing, Onboarding & Volume Discounts

You can purchase any combination of our broad range of e-Learning courses and onboard multiple users in your Firm, in just four quick and easy online steps:

  1. Select the courses and add them to your Basket
  2. Checkout and purchase your course(s)
  3. Sign In and Register your relevant employees/Users
  4. Allocate all your registered employees/Users to their course(s)

We’ll help you connect the dots with clear prompts and assistance throughout this quick and easy four-step process, which includes applying automated Volume Discounts depending on the number of courses you purchase, as follows:

Number of courses Volume Discount
10 – 24 Courses 2.5% Discount
25 – 49 Courses 5% Discount
50 – 99 Courses 7.5% Discount
100 – 149 Courses 10% Discount
150 – 199 Courses 12.5% Discount
200 – 249 Courses 15% Discount
250 – 299 Courses 17.5% Discount
>300 Courses 20% Discount

You will receive an enrolment email for each Course you sign Users up to.

Once registered and enrolled onto their course(s), your employees/Users will each receive a welcome email inclusive of their login credentials/instructions together with a separate enrolment confirmation for each of their courses.

All Clients have access to a centralised User Dashboard with Live Reporting on the progress of all your enrolled employees/Users and from where you can download all your employees/Users Course Certificates once they have successfully completed their courses. This is clearly explained in our Power User Guide, downloadable from your Account.