Monday, June 13, 2022On May 25, 2022, the SEC issued two new sets of proposed rules: “Investment Company Names” (“Names Rule”),[1] and “Environmental, Social, and Governance Disclosures for Investment Advisers and Investment Companies” (“ESG Disclosure Rule”). Investment Company NamesThe original names rule was adopted in 2001; the proposed Names Rule reflects an update to and revision of the original names rule. particularly in light of market and other developments since the adoption of [the] rule [] in 2001.”[5] The proposed Names Rule reflects the result of that process. One of the more significant aspects of the ESG Disclosure Rule is the schematic it imposes upon ESG-related funds. ConclusionThe SEC’s proposed Names Rule and ESG Disclosure Rule are designed to combat greenwashing, and, if ultimately promulgated as written, would likely advance efforts to do so.

Source: Wall Street Journal June 13, 2022 23:15 UTC