ESG & Investing
SEC Rule Cracks Down on Misleading ESG, Growth Fund Labels
- Regulator is concerned that labels don’t match strategies
- Funds name regulations get biggest overhaul in decades
The US Securities and Exchange Commission headquarters in Washington, DC.
Photographer: Al Drago/BloombergThis article is for subscribers only.
The world’s biggest investment firms are getting much tougher rules for naming funds, as the US Securities and Exchange Commission clamps down on labels it says can be misleading.
The SEC voted on Wednesday to impose the most sweeping overhaul for fund-labeling regulations in more than two decades. Backers say the measures in particular will help rein in overblown claims about environmental, social or governance investments.