SEC Proposes To Curb Misleading ‘ESG’ Fund Names, Boost Disclosure

The Securities and Exchange Commission (SEC) is proposing to increase scrutiny of investment funds currently marketed as environmentally friendly, advancing a pair of measures to limit which funds can use an environmental, social, or governance (ESG) designation and increase disclosures for such funds and investment advisors. The SEC at a May 25 meeting voted 3-1 to advance the two proposed rules. One plan would update rules under a 2001 law regulating names of funds, and the second proposal would amend...