According to the SEC’s Order, from 2020 to 2022, Invesco told clients and stated in marketing materials that between 70 and 94 percent of its parent company’s assets under management were “ESG integrated.” However, in reality, these percentages included a substantial amount of assets that were held in passive ETFs that did not consider ESG factors in investment decisions. Furthermore, the SEC found that Invesco lacked any written policy defining ESG integration.

The SEC claimed that Invesco wilfully breachedthe Investment Advisers Act of 1940. Without admitting or denying the order’s findings, Invesco agreed to cease and desist from breaches of the cited provisions, be censured and pay the aforementioned USD17.5 million civil penalty.