The Financial Industry Regulatory Authority is keeping a lookout for brokers misleading customers about environmental, social and governance investments, three months after the SEC dropped ESG from its 2024 examination priorities.
FINRA has alerted firms for the second consecutive year that it’s scrutinizing the ESG-related claims they make to their clients. The warning came as part of the broker regulator’s annual examination and risk monitoring report, released Tuesday.
The Securities and Exchange Commission by contrast made no direct reference to ESG in its 2024 Division of Examinations priorities for brokers, investment advisers and other securities industry members after mentioning it ...
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