The Ontario Securities Commission (OSC) accused prominent investment firm Purpose and its CEO Som Seif of making misleading statements about how its funds incorporated environmental, social and governance (ESG) factors between September 2019 and March 2023. It is seeking up to a maximum of $5 million for each violation of the law, Seif’s resignation and other remedies that could affect the ability of Seif and Purpose to operate in Ontario. Purpose denies the allegations and plans to contest the enforcement action. (The Logic)

Talking point: The OSC has chosen a prominent target for its first enforcement action related to greenwashing. Seif is a well-known Bay Street figure and Purpose has more than $23 billion in assets under management. The OSC alleges Purpose did not consider ESG factors when making investment decisions in many of its funds, despite making 19 statements to the contrary during the three-and-a-half-year period. In a release, Purpose said the firm has been clear about its ESG approach and noted the OSC is not alleging investor harm.