- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Kyle Brasseur2023-09-20T20:01:00
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.
“The Names Rule reflects a basic idea: A fund’s investment portfolio should match a fund’s advertised investment focus,” said SEC Chair Gary Gensler in a statement. “… Otherwise, a fund’s portfolio might be inconsistent with what fund investors desired when selecting a fund based upon its name.”
The amendments take effect 60 days after publication in the Federal Register. Fund groups with net assets of $1 billion or more must comply within 24 months, while those with net assets of less than $1 billion have 30 months to comply.
THIS IS MEMBERS-ONLY CONTENT. To continue reading, choose one of the options below.
News and analysis for the well-informed compliance or audit exec. Select an option and click continue.
Annual Membership $499 Value offer
Full price one year membership with auto-renewal.
Membership $599
One-year only, no auto-renewal.
The Securities and Exchange Commission adopted a rule change aimed at reducing the threat of systemic risk to U.S. Treasury securities by facilitating additional central clearing in the market.
Gary Gensler, despite being put on the spot by a member of Congress, declined to provide an update on when the Securities and Exchange Commission might approve its climate-related disclosure rule for public companies.
Hester Peirce of the Securities and Exchange Commission argued materiality-based standards—not environmental, social, and governance standards—best suit investors’ needs during a recent speech.
Securities and Exchange Commission Chair Gary Gensler will step down from his position as the top U.S. regulator of Wall Street when Donald Trump is sworn in as president on Jan. 20, ending weeks of speculation about his future.
President-elect Donald Trump announced he plans to appoint Cantor Fitzgerald President and CEO Howard Lutnick to lead the U.S. Commerce Department, as the incoming administration is expected to charge import tariffs against friends and foes.
If your business uses leather, rubber, wood, beef, palm oil, soy, or paper, then you may need to comply with the EU Deforestation Directive, a new rule intended to ensure that no goods traded in the EU contribute to global deforestation.
