Finance
ESG Funds Might Soon Have to Prove to SEC They’re Actually ESG
- Regulator seeks comment on whether rules should be stiffened
- Concern is that fund names don’t match what they invest in
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The U.S. money management industry has experienced a boom in recent years of firms touting their commitment to green investing and buying the shares of socially-responsible companies.
Now, the Securities and Exchange Commission wants to know whether money managers are engaging in false advertising by saying funds are devoted to doing good when the reality is much murkier.