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Home / Insurance / SEC to consider new & # 39; sustainable & # 39; fund criteria, rules for publishing information

SEC to consider new & # 39; sustainable & # 39; fund criteria, rules for publishing information



(Reuters) – US Securities and Exchange Commission chairman Gary Gensler said on Wednesday that he had asked regulators to consider rules requiring self-appointed "sustainable" fund managers to disclose the criteria and underlying data used to support brand

There is a growing fear that US funds that want to monetize the popularity of sustainable or "ESG" investments may mislead shareholders about their underlying investment products, a method also known as "greenwashing."

Mr. Gensler told a panel of SEC staff and academics advocating on behalf of investors that the potential fund rules would complement new public requirements for disclosing risks of climate change that the agency plans to propose in October.

They would also seek to wipe out investments that products sell wrong and create standardized languages ​​and terms around sustainable investment, Gensler told the SEC's Advisory Committee on Asset Management.

"When it comes to investing, mutual funds often also reveal objective measures," he added. "When it comes to sustainability-related investments, there is currently a wide range of what asset managers can mean by certain terms or what criteria they use."

The SEC has previously stated that it would review investment advisers and funds investigating sustainable sustainability. products for green laundry and other compliance issues, but Mr Gensler's comments on Wednesday provided more information on how the agency would address the issue.

Although European regulators have introduced rules for dealing with green laundry, the United States lags behind. And with a record $ 51

billion flooding into sustainable U.S. funds in 2020 alone, according to Morningstar, investors need to be better informed about what's in those funds, the SEC said.

Mr. Gensler added that he has also asked staff to make a comprehensive review of the conventions on the naming of funds.

“The name of a fund is one of the first pieces of information that investors see. If a fund's name suggests a certain investment focus, investors expect investments in this area.

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