Spencer Feldman Publishes Article in Bloomberg Law on the SEC’s Amended ESG Names Rule

Article

Olshan partner Spencer Feldman published an article in Bloomberg Law (subscription required) entitled “SEC’s Amended ESG Names Rule Sends Clear Signal to Companies.” The article discusses SEC amendments to the Investment Company Act’s “names rule,” prohibiting investment funds from using names that are likely to mislead or deceive investors about a fund’s investments. The amendments focused on funds using such terms as “sustainable,” “green,” or “socially responsible” when they do not invest a substantial amount in such sectors. “The amended names rule highlights the need for investment funds and individual public companies to ensure transparency and avoid investment deception in their naming and promotion,” Spencer writes. “The amendments establish a new requirement that a fund review its portfolio assets’ treatment under its 80% investment policy at least quarterly and include timeframes for getting back into compliance if a fund departs from its 80% investment policy.” He concludes, “Investment funds and individual public companies should familiarize themselves with the SEC’s message, as materially misleading and deceptive names are subject to the anti-fraud provisions of the US federal securities laws.”

Media Contact

Marketing Contact
Mizi Mehaj
Marketing & Administrative Manager
mmehaj@olshanlaw.com
212.451.2319


Jump to Page

Necessary Cookies

Necessary cookies enable core functionality such as security, network management, and accessibility. You may disable these by changing your browser settings, but this may affect how the website functions.

Analytical Cookies

Analytical cookies help us improve our website by collecting and reporting information on its usage. We access and process information from these cookies at an aggregate level.