DB - SEC poised to propose rules on ESG funds marketing labeling - Reuters

The U.S. Securities and Exchange Commission will propose rule changes to crack down on unsubstantiated claims by funds about their environmental, social, and corporate governance performance, Reuters reported Wednesday, citing people who have spoken to the SEC about the matter. The proposal will encompass how ESG funds should be marketed and how investment advisers should provide the reasoning behind labeling a fund. It would also require that investment funds using terms such as sustainable, ESG, and low-carbon in their names provide the criteria and underlying data to back the label, the people told Reuters. While the rules would apply to all funds, the SEC's target is ESG funds. Such funds attracted a record $649B through Nov. 30, 2021, up from $542B in 2020 and $285B in 2019, according to Refinitiv Lipper. "We are hopeful that the new rule will require fund managers to follow basic naming guidelines," Andrew Behar, president

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SEC poised to propose rules on ESG funds marketing, labeling - Reuters