SEC unveils ESG labelling rules for mutual funds

The US Securities and Exchange Commission has published enhanced rules to clamp down on the misleading labelling of ESG funds. The amendment has updated the ‘Names Rule' under the Investment Company Act to ensure the name of a fund "adequately and accurately represents the investment strategy of the fund", the SEC said. The rule also takes aim funds using terms such as 'growth' and 'value', which the industry has pushed back on because different firms define those strategies differently. Previously, the names rule required funds that had a name suggesting a particular type of inves...