10.04.22

Fund Managers, Regulators Wrestle Over Plans To Tighten ESG Rules

by: Shane Shifflet

Regulators in the United States and Europe are trying to tighten rules on popular environmental, social and governance investment products, triggering a backlash from investors and businesses. Proposed regulations from the U.S. Securities and Exchange Commission would establish a common benchmark for how sustainable investment products are labeled, marketed and reported. That could lead to investors pulling cash from funds that don’t appear to be taking the standards seriously. Many large U.S. investment advisors are also subject to European rules, where regulators have some of the world’s most stringent environmental-disclosure policies and are considering tighter regulations.

Read the full article on Wall Street Journal