New ESG Rule Proposal Raises the Stakes under SEC’s New Marketing Rule

On May 25, 2022, the U.S. Securities and Exchange Commission proposed amendments to rules and related reporting forms under the Investment Advisers Act of 1940 and the Investment Company Act of 1940 that are ostensibly intended to provide additional transparency regarding the use of environmental, social, and governance factors by investment advisers and investment companies (the “Proposal,” available here), but which will also give SEC Examination and Enforcement staff additional tools to track and target advisers and funds pursuing an ESG strategy.

Please click here to continue reading on the Cleary Enforcement Watch blog.