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BlackRock warned for ‘misleading statements’ tied to ESG funds

BlackRock received a legal warning from Mississippi for “false and misleading statements to Mississippi investors” related to its environmental, social, and governance (ESG) investment strategy, according to a 33-page document. That’s what it means. document It was released on Wednesday.

Mississippi Secretary of State Michael Watson and the state’s Securities Department issued a “summary cease and desist order” warning the New York-based asset management company of multi-million dollar administrative penalties.

Mississippi’s legal warning comes after Florida, Louisiana and Missouri previously announced plans to rescind investment orders from BlackRock, citing concerns such as the impact of its ESG efforts on investor returns. This was done in response to the announcement made by


Mississippi’s legal warning comes after Florida, Louisiana and Missouri previously announced plans to withdraw investment mandates from the company. Reuters

CEO Larry Fink
Chief Executive Officer Larry Fink said last year that the company lost about $4 billion in assets under management as a result of the political backlash. Reuters

The world’s largest asset manager has been at the forefront of scrutiny over its ESG policies in some Republican-run states.

Chief Executive Officer Larry Fink said last year that the company lost about $4 billion in assets under management as a result of the political backlash.

“We operate in one of the most highly regulated industries in the country and are committed to complying with the law in all aspects,” BlackRock said in a statement to Reuters.

“Our only challenge is to maximize the risk-adjusted returns of the funds our clients choose to invest in,” he added.

Last year, the state of Tennessee announced that it had sued an asset manager for violating consumer protection laws and neglecting the extent to which ESG considerations drove its investment strategy.

BlackRock had $10 trillion in assets under management as of December 31, 2023, and serves customers in more than 100 countries around the world.

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