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.

Aaron Nicodemus is the Editor-in-Chief of Compliance Week. He previously worked as a reporter for Bloomberg Law and as business editor at the Telegram & Gazette in Worcester, Mass. Email: aaron.nicodemus@complianceweek.com LinkedIn:...