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SEC Charges Goldman Sachs Asset Management for declining to go behind its Policies and Procedures Concerning ESG Investments

September 25, 2023: On Friday, the SEC charged Goldman Sachs Asset Management for declining to go behind its Policies and Procedures Concerning ESG Investments.

Goldman Sachs has agreed to pay a $1.5 million fine to settle charges the U.S. Securities and Exchange Commission gets over deficient “blue sheet” offers. Blue sheet submissions are electronic requests sent by the SEC to gather information about securities trading, including details about buyers and sellers.

According to the SEC, Goldman Sachs made more than 22,000 deficient blue sheet submissions over ten years, affecting transactions worth at least $6 million. The inaccurate data could have helped the SEC conduct its enforcement and regulatory functions, protect investors, and maintain demand integrity.

Goldman Sachs admitted to the findings and agreed to the fine and censure.

 The firm is also taking steps to remediate its deficiencies and resubmit corrected data to the SEC. It self-reported 29 of the 43 errors detected by the SEC after conducting an internal review.

The SEC’s action underscores the importance of financial institutions providing complete and accurate data in response to regulatory requests. Additionally, the settlement highlights the need for robust internal procedures to ensure the accuracy of blue sheet submissions and compliance with regulatory requirements.

SEC Charges Goldman Sachs Asset Management for declining to go behind its Policies and Procedures Concerning ESG Investments