In this latest financial services ESG briefing we compare the regimes that are being developed by EU, US and UK regulators as regards fund names. Investor demand for investment funds that incorporate environmental, social and governance factors have grown and will continue to grow in the future. The name of a fund is important as it is usually the first fund attribute that investors see and can have a significant impact on investment decisions. Financial services regulators are aware of this and have concerns regarding greenwashing.

In response in the EU, the European Securities and Markets Authority is consulting on draft guidelines on funds’ names using ESG or sustainability-related terms. In the UK, the Financial Conduct Authority is consulting on sustainable investment labels and a general anti-greenwashing rule. In the US, amendments are being proposed to rule 35d-18 of the Investment Company Act of 1940 (also known as the “Names Rule”) to expand its scope to apply to any fund name with terms that suggest, among others, investment decisions incorporating one or more ESG factors.



Contacts

Claire Guilbert
Claire Guilbert
Partner
Email
claire.guilbert@nortonrosefulbright.com
T: +352 621 747 650
Cyril Clugnac
Cyril Clugnac
Senior Associate
Email
cyril.clugnac@nortonrosefulbright.com
T: +352 28 57 39 213
Floortje Nagelkerke
Floortje Nagelkerke
Partner
Email
floortje.nagelkerke@nortonrosefulbright.com
T: +31 (20) 4629426
Andrew Lom
Andrew Lom
US Head of Financial Services and Global Head of Private Wealth
Email
andrew.lom@nortonrosefulbright.com
T: +1 212 318 3119
Simon Lovegrove
Simon Lovegrove
Global Director of Financial Services Knowledge, Innovation and Product
Email
simon.lovegrove@nortonrosefulbright.com
T: +44 (20) 74443110
Matthew Gregory
Matthew Gregory
Partner
Email
matthew.gregory@nortonrosefulbright.com
T: +44 (20) 74442467

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