SEC Planned Crackdown on ‘Misleading’ Funds Goes Far Beyond ESG
- Proposal to toughen rules on fund labels may have a big impact
- Many more products may need 80% of assets to match their name
The U.S. Securities and Exchange Commission headquarters in Washington, D.C.
Photographer: Al Drago/BloombergThis article is for subscribers only.
New proposals from the US Securities and Exchange Commission to crack down on money managers using misleading or deceptive fund names threaten to impact investing strategies of all stripes -- not just those focused on ESG issues.
The Wall Street watchdog floated tighter rules Wednesday to ensure a product’s name is squarely focused on its actual strategy, with most observers fixating on what the restrictions mean for socially responsible investing. Yet the proposals could hit thousands more funds trading everything from value and growth stocks to bonds and emerging markets.