Investment advisers and companies are pushing back against a recently proposed rule by the Securities and Exchange Commission (SEC) that would require enhanced disclosures about funds that claim environmental, social, and governance (ESG) strategies drive investment choices, worrying it would have “substantial impact” without providing useful information to investors.
The proposed rule would “categorize certain types of ESG strategies broadly and require funds and advisers to provide more specific disclosures in fund prospectuses, annual reports, and adviser brochures based on the ESG strategies they pursue,” the SEC said in a press release May 25.
