• Login
    • Advanced search
    • Title
    • Channel
    • Module
  • Home
  • Industry
    •  

      • Aerospace, Defense, and Government Services
      • Automotive
      • Consumer
      • Manufacturing and Industrials
      • Education
      • Energy and Natural Resources
      • Financial Institutions
    •  

      • Insurance
      • Life Sciences and Health Care
      • Private Capital
      • Real Estate
      • Sports, Media and Entertainment
      • Technology and Telecoms
      • Transport and Logistics
  • Practice
    • Corporate & Finance

      • Banking and Loan Finance
      • Blockchain
      • Business Restructuring and Insolvency
      • Capital Markets
      • Corporate Governance and Public Company Representation
      • Infrastructure, Energy, Resources, and Projects
      • Leveraged and Acquisition Finance
      • Mergers and Acquisitions
      • Pensions
      • Private Equity, Venture Capital and Investment Funds
      • Real Estate
      • Real Estate Investment Trusts (REITs)
      • Tax
      • Transfer Pricing
    • Global Regulatory

      • Administrative and Public Law
      • Antitrust and Competition
      • Communications, Internet, and Media
      • Education
      • Energy Regulatory
      • Environment and Natural Resources
      • Financial Services
      • Food Law
      • Gaming Law
      • Government Contracts and Public Procurement
      • Government Relations and Public Affairs
      • Health
      • Immigration
      • International Trade and Investment
      • Medical Device and Technology Regulatory
      • New Nuclear
      • Pharmaceuticals and Biotechnology Regulatory
      • Privacy and Cybersecurity
      • Space and Satellite
      • Strategic Operations, Agreements and Regulation
      • Transportation Regulatory
    • Intellectual Property

      • Copyright
      • Designs
      • Domain Names
      • IP and Technology Transactions
      • IP Enforcement
      • Patents
      • Trade Secrets and Confidential Know-how
      • Trademarks and Brands
      • Unfair Competition
    • Litigation, Arbitration, and Employment

      • Business and Human Rights
      • Construction and Engineering
      • Corporate and Securities Litigation
      • Employment
      • International Arbitration
      • Investigations, White Collar, and Fraud
      • Products Law
      • Risks, Disputes, and Litigation
  • Comparative guides
  • Engage Premium
  • Login
  • Register
Hogan Lovells Engage 5.6.14
      • Title
      • Channel
      • Module
    • Hit ENTER to search in content
    • Advanced search
    • Login
  • Home
  • Industry
    •  

      • Aerospace, Defense, and Government Services
      • Automotive
      • Consumer
      • Manufacturing and Industrials
      • Education
      • Energy and Natural Resources
      • Financial Institutions
    •  

      • Insurance
      • Life Sciences and Health Care
      • Private Capital
      • Real Estate
      • Sports, Media and Entertainment
      • Technology and Telecoms
      • Transport and Logistics
  • Practice
    • Corporate & Finance

      • Banking and Loan Finance
      • Blockchain
      • Business Restructuring and Insolvency
      • Capital Markets
      • Corporate Governance and Public Company Representation
      • Infrastructure, Energy, Resources, and Projects
      • Leveraged and Acquisition Finance
      • Mergers and Acquisitions
      • Pensions
      • Private Equity, Venture Capital and Investment Funds
      • Real Estate
      • Real Estate Investment Trusts (REITs)
      • Tax
      • Transfer Pricing
    • Global Regulatory

      • Administrative and Public Law
      • Antitrust and Competition
      • Communications, Internet, and Media
      • Education
      • Energy Regulatory
      • Environment and Natural Resources
      • Financial Services
      • Food Law
      • Gaming Law
      • Government Contracts and Public Procurement
      • Government Relations and Public Affairs
      • Health
      • Immigration
      • International Trade and Investment
      • Medical Device and Technology Regulatory
      • New Nuclear
      • Pharmaceuticals and Biotechnology Regulatory
      • Privacy and Cybersecurity
      • Space and Satellite
      • Strategic Operations, Agreements and Regulation
      • Transportation Regulatory
    • Intellectual Property

      • Copyright
      • Designs
      • Domain Names
      • IP and Technology Transactions
      • IP Enforcement
      • Patents
      • Trade Secrets and Confidential Know-how
      • Trademarks and Brands
      • Unfair Competition
    • Litigation, Arbitration, and Employment

      • Business and Human Rights
      • Construction and Engineering
      • Corporate and Securities Litigation
      • Employment
      • International Arbitration
      • Investigations, White Collar, and Fraud
      • Products Law
      • Risks, Disputes, and Litigation
  • Comparative guides
  • Engage Premium
  • Login
  • Register
  1. News
  2. SEC releases long-awaited ESG proposal for investment companies and investment advisers

SEC releases long-awaited ESG proposal for investment companies and investment advisers

01/06/2022
    • Share by email
    • Share on
    • Twitter
    • LinkedIn
    • Get link
    • Get QR Code
    • Download
    • Print

On 25 May, the Securities and Exchange Commission (the SEC) introduced a proposal to amend certain rules and forms under the U.S. Investment Advisers Act of 1940 (the Advisers Act) and the U.S. Investment Company Act of 1940 (the Company Act) to provide what the SEC describes as greater transparency to investors about the environmental, social, and governance (ESG) factors in certain investment products, especially for those investment funds marketing themselves as having ESG-focused strategies.

The SEC does not currently mandate specific disclosures by funds or advisers with respect to ESG, instead applying existing anti-fraud and marketing rules and regulations that apply to all disclosures, including ESG matters. In emphasizing special risks to investors in ESG-focused investment products, the SEC intends the proposed rules to provide investors with consistent, comparable and reliable information about funds and ESG strategies. In particular, the SEC expressed concern about “greenwashing,” the notion that funds or advisers may overemphasize the role that ESG factors play in their investment decisions.

The SEC’s proposal imposes the heaviest new burdens on registered investment companies (such as mutual funds, exchange-traded funds and other registered investment products), unit trust investments, and business development companies and not on private funds.

Nonetheless, the new rules would affect private funds through proposed amendments to Form ADV, with implications not only for registered investment advisers (RIAs) but also, in some cases, exempt reporting advisers (ERAs) relying on the venture capital fund adviser or private fund adviser exemptions from registration.

The ESG rules are the latest in a flurry of SEC rulemaking proposals, which follow (i) proposed Advisers Act rule amendments in January relating to Form PF reporting; (ii) proposed rules under the Company Act and Advisers Act in February bolstering cybersecurity practices and imposing sweeping new restrictions and regulations on private funds in February; and (iii) proposed Company Act rules in March enhancing disclosures and protections relating to special purpose acquisition companies (SPACs).

 

button

 

 

 

Authored by Adam Brown, Parik Dasgupta, Henry Kahn, Bryan Ricapito, David Winter, Kevin Lees, and Ali D'Amelio.

Contacts
Adam Brown
Partner
Northern Virginia
Parikshit Dasgupta
Partner
New York
Henry Kahn
Partner
Baltimore
Bryan Ricapito
Partner
Washington, D.C.
David Winter
Partner
Washington, D.C.
Kevin Lees
Corporate Funds Area Operations Manager
NW Washington, D.C.
Ali D'Amelio
Associate
Washington, D.C.
Keywords SEC, Private Fund, Private Fund Transparency, Advisers Act, Investment Funds, ESG
Languages English
Topics Fund Formation, Secondaries, Fund Formation, Fund Raising, Restructuring and Dissolution, Investments, Financing, Portfolio Company Advice and Exits, Private Capital Regulatory, Compliance and Disputes, Infrastructure and Energy Funds, Pension Funds, Private Credit/Debt Funds, Private Equity Funds, Real Estate Investment Vehicles and Funds, Sovereign Wealth Funds, Venture Capital Funds, Corporate Governance, Corporate / Company Law, Securities and Public Company Advisory, ESG – Environmental, Social, and Governance
Countries United States
Delete Comment ?

Are you sure want to delete comment ?

Get link
Embed
Share by email
Get QR Code

Scan this QR Code to share this content