The Securities and Exchange Commission (SEC) adopted amendments to its rule covering fund names to ensure the regulation is appropriate to address new investment drivers, namely environmental, social, and governance (ESG) matters.
The changes to the “Names Rule,” finalized by the agency Wednesday, broaden the scope of the regulation and establish new disclosure and recordkeeping requirements related to the rule. The goal of the amendments is to provide better truth in advertising, as the name of a fund is typically the first piece of information an investor receives.
