DB - SEC proposes rules to crack down on ESG funds marketing labeling (updated)

The U.S. Securities and Exchange Commission is proposing rule changes to crack down on unsubstantiated claims by funds about their environmental, social, and corporate governance performance, Reuters reported on Wednesday, citing people who spoke with the SEC on the matter. The proposal will encompass how 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, Reuters said. Such funds attracted a record $649B through Nov. 30, 2021, up from $542B in 2020 and $285B in 2019, according to Refinitiv Lipper. "A lot has happened in our capital markets in the past two decades. As the fund industry has developed, gaps

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SEC proposes rules to crack down on ESG funds marketing, labeling (updated)