12:50 PM EDT, 08/06/2024 (MT Newswires) -- WisdomTree ( WT ) said Tuesday that its unit WisdomTree Asset Management received a Wells Notice from the SEC for alleged violations related to three exchange-traded series of WisdomTree Trust.

WisdomTree Asset Management managed three exchange-traded series of WisdomTree Trust that pursued environmental, social and governance-focused investment strategies. The board of trustees approved liquidation of the ESG funds in December 2023 due to factors, including "persistent lack of investor demand and limited prospects for future asset growth," according to a filing Tuesday.

Each fund completed its liquidation in February, WisdomTree ( WT ) said in the filing.

SEC staff has made a "preliminary determination" to recommend that the regulator file an enforcement action against WisdomTree Asset Management, among other remedies. The notice is neither a formal charge nor a determination that the recipient has violated any law.

The company said in the filing that its actions have complied with laws and regulations, and it will pursue the notice process that includes responding to the staff's position.

WisdomTree ( WT ) shares were down more than 2% in recent trading.

Price: 9.81, Change: -0.23, Percent Change: -2.34