Regulation

ESG funds face new disclosure rules from SEC

Agency votes to float plans to give investors more information on environmental, social and corporate-governance vehicles

Regulators proposed new disclosure and naming requirements for investment funds that tap into public angst regarding climate change or social justice, in an effort to address concerns about “greenwashing” by asset managers seeking higher fees.

The Securities and Exchange Commission voted 25 May to issue two proposals that aim to give investors more information about mutual funds, exchange-traded funds and similar vehicles that take into account ESG — or environmental, social and corporate-governance — factors.

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