Regulatory & Compliance | 09.20.23

SEC To Vote Wednesday on Rule To Curb Misleading Fund Names

by: Melanie Waddell

The U.S. Securities and Exchange Commission (SEC) on Wednesday was scheduled to vote on a final rule to address certain broad categories of investment company names that could mislead investors about investments and risks. The proposed amendments the SEC will consider “also include enhanced prospectus disclosure requirements for terminology used in investment company names, as well as public reporting regarding compliance with new names-related requirements,” according to a notice on the regulator’s website. Investment company names include those of mutual funds, exchange-traded funds and business development companies.

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