SEC questions funds over ESG labels – company insurance
(Reuters) – The U.S. Securities and Exchange Commission has been asking money managers to explain the standards they use to classify funds as environmental, social and governance-minded for several months, Bloomberg News reported, citing people familiar with the matter .
This is the second such review by the U.S. Securities and Exchange Commission after regulators found “potentially misleading” allegations and inadequate controls over investments in ESG issues in an April review of investment advisers and funds.
Investment advisers were asked to "carefully detail" the screening processes they use to ensure assets are worthy of the ESG award, according to Friday's report.
Another SEC request sought information on ESG compliance programs, policies and procedures, the report said, citing another source.