{"id":1267,"date":"2022-06-06T18:01:27","date_gmt":"2022-06-06T18:01:27","guid":{"rendered":"http:\/\/localhost\/?p=1267"},"modified":"2022-06-08T20:11:35","modified_gmt":"2022-06-08T20:11:35","slug":"sec-proposes-amendments-to-expand-the-reach-of-the-fund-names-rule-with-a-specific-focus-on-esg","status":"publish","type":"post","link":"https:\/\/bdia.pli.edu\/index.php\/2022\/06\/06\/sec-proposes-amendments-to-expand-the-reach-of-the-fund-names-rule-with-a-specific-focus-on-esg\/","title":{"rendered":"SEC proposes amendments to expand the reach of the fund \u201cNames Rule,\u201d with a specific focus on ESG"},"content":{"rendered":"<p>On May 25, 2022, the US Securities and Exchange Commission (the SEC) proposed amendments (the Proposal) to Rule 35d-1 (the Rule) under the Investment Company Act of 1940, as amended (the 1940 Act).\u00a0The Proposal comes over 20 years after the original adoption of the Rule\u00a0and seeks to greatly expand the scope of the Rule in the name of investor protection and modernization.\u00a0 The Proposal includes the following primary amendments to the Rule:<\/p>\n<ul>\n<li>Expansion of the 80% policy requirement to include funds\u00a0with names that suggest the fund focuses on investments that have, or whose issuers have, \u201cparticular characteristics.\u201d<\/li>\n<li>A requirement that any unlisted closed-end funds or BDCs that are required to have an 80% policy under the Rule, adopt such policy as a fundamental policy.<\/li>\n<li>Identification of particular circumstances under which a fund may depart from its 80% policy\u00a0and specific time frames for getting back into compliance.<\/li>\n<li>Establishment of the \u201cnotional amount\u201d as the appropriate value for a derivative instrument used by a fund when calculating compliance with a fund\u2019s 80% policy.<\/li>\n<li>Clarification of what the SEC deems a materially deceptive and misleading use of environmental, social and governance (ESG) terminology.<\/li>\n<li>A requirement that any terms used in a fund\u2019s name that suggest an investment focus or a tax-exempt fund, must be consistent with those terms\u2019 plain English meaning or established industry use.<\/li>\n<li>Modernization of shareholder notice requirements.<\/li>\n<li>Establishment of certain recordkeeping requirements related to a fund\u2019s 80% policy.<\/li>\n<\/ul>\n<p><a href=\"https:\/\/us.eversheds-sutherland.com\/NewsCommentary\/Legal-Alerts\/251522\/SEC-proposes-amendments-to-expand-the-reach-of-the-fund-Names-Rule-with-a-specific-focus-on-ESG?utm_source=vuture&amp;utm_medium=email&amp;utm_campaign=vuture-emails\">Read more here<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>On May 25, 2022, the US Securities and Exchange Commission (the SEC) proposed amendments (the Proposal) to Rule 35d-1 (the Rule) under the Investment Company Act of 1940, as amended (the 1940 Act).\u00a0The Proposal comes over 20 years after the original adoption of the Rule\u00a0and seeks to greatly expand the scope of the Rule in &hellip; <a href=\"https:\/\/bdia.pli.edu\/index.php\/2022\/06\/06\/sec-proposes-amendments-to-expand-the-reach-of-the-fund-names-rule-with-a-specific-focus-on-esg\/\" class=\"more-link\">Continue reading <span class=\"screen-reader-text\">SEC proposes amendments to expand the reach of the fund \u201cNames Rule,\u201d with a specific focus on ESG<\/span> <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[23,21,22],"tags":[],"class_list":["post-1267","post","type-post","status-publish","format-standard","hentry","category-compliance","category-regulatory","category-standard-of-care"],"aioseo_notices":[],"post_mailing_queue_ids":[],"_links":{"self":[{"href":"https:\/\/bdia.pli.edu\/index.php\/wp-json\/wp\/v2\/posts\/1267","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bdia.pli.edu\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bdia.pli.edu\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bdia.pli.edu\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/bdia.pli.edu\/index.php\/wp-json\/wp\/v2\/comments?post=1267"}],"version-history":[{"count":0,"href":"https:\/\/bdia.pli.edu\/index.php\/wp-json\/wp\/v2\/posts\/1267\/revisions"}],"wp:attachment":[{"href":"https:\/\/bdia.pli.edu\/index.php\/wp-json\/wp\/v2\/media?parent=1267"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bdia.pli.edu\/index.php\/wp-json\/wp\/v2\/categories?post=1267"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bdia.pli.edu\/index.php\/wp-json\/wp\/v2\/tags?post=1267"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}