SEC’s Fort Worth Regional Office Investigating Underwriter Disclosures on Environmental, Social, and Governance Issues

01.10.22

FORT WORTH, January 10, 2022 - The Securities and Exchange Commission (SEC), under the Biden Administration, has prioritized enforcement of disclosures concerning Environmental, Social, and Governance Issues (ESG), creating an enforcement task force to examine misconduct related to these disclosures. 

Recently, the SEC’s Fort Worth regional office reportedly launched an investigation into ESG disclosures by underwriters relating to investments in the oil-and-gas and firearm industries. Many financial institutions have enacted policies limiting their participation in these industries. 

In response, recently enacted provisions of the Texas Government Code place restrictions on the ability of Texas governmental entities, such as state and local governmental bodies issuing securities, to invest with, or enter into contracts with, companies that “boycott” or “discriminate” against the oil-and-gas and firearm industries*.

“The new laws require financial institutions doing business with Texas governmental entities to certify they are not boycotting or discriminating against these types of companies,” said Toby Galloway, a Shareholder and is Chair of the firm’s, Securities Litigation & Enforcement group.

“The SEC is reportedly investigating whether financial institutions doing underwriting work in Texas are being consistent in what they disclose to investors and the State of Texas regarding these hot-button issues. It will be interesting to see if this emphasis on ESG disclosure will continue to grow,” added Mr. Galloway.

To book an interview with Mr. Galloway, please contact Stephen Hastings at Winstead.


Media Contact

Stephen Hastings
Director of Communications & Media Relations

214.745.5485 direct
832.343.4228 mobile
shastings@winstead.com 

About Winstead

Winstead is a national business law firm with more than 300 attorneys who serve as trusted advisors to emerging, mid-market and large companies, both public and private. The Winstead team provides a range of core legal services that are critical to our clients achieving their business goals. Winstead’s business transactions and litigation practices serve key industries including airlines, financial services, higher education, healthcare, investment management & private funds, life sciences, real estate, and sports business & media.

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