regulation

In brief: SEC to vote on rules for marketing ‘ESG’ and ‘sustainable’ funds

Proposed amendments to the SEC’s ‘Names Rule’ will provide criteria and disclosure requirements for funds with ‘ESG’ and ‘sustainable’ labels.

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The US’s Securities and Exchange Commission will decide on Wednesday whether to adopt new rules that address greenwashing among investment managers.

The SEC has proposed amendments to the Investment Company Act of 1940 (also known as the ‘Names Rule’). The proposed amendments cover listed, unlisted and closed-ended. The proposals introduce new criteria and disclosure requirements for managers using labels such as ‘ESG’ and ‘sustainable’ for their funds.

Stay tuned: we’ll bring you a deeper analysis of exactly what the proposals mean for private fund managers later this month.