US SIF releases statement on SEC final rule on “Investment Company Names”
US SIF: The Sustainable Investment Forum today released a statement on the Securities and Exchange Commission (SEC) final rule on “Investment Company Names.”
WASHINGTON, D.C., September 20, 2023 – US SIF: The Sustainable Investment Forum today released a statement on the Securities and Exchange Commission (SEC) final rule on “Investment Company Names.”
Maria Lettini, CEO of US SIF: The Sustainable Investment Forum, made the following statement:
“The final rule brings further clarity to the marketplace around investment company names. Fund names offer important signaling for investors in assessing their investment options. The final rule from the SEC succeeds in combating misleading fund names and provides additional transparency for investors and important guidance for funds.
The SEC's final Names Rule expands the 80 percent investment policy requirement to also apply to the focus of the fund and the terms used in its name and enhances prospectus disclosures related to terms used in the fund name. While not limited to funds with sustainable investing names, industry observers suggest the rule could be instrumental in addressing concerns about “greenwashing.”
About US SIF and the US SIF Foundation
US SIF: Sustainable Investment Forum is the leading voice advancing sustainable investing across all asset classes. Its mission is to rapidly shift investment practices toward sustainability-aligned goals with the aim of achieving long-term investment goals and preserving our planet and society. US SIF members include investment management and advisory firms, mutual fund companies, asset owners, data and research firms, financial planners and advisors, broker-dealers, banks, credit unions, community development financial institutions and non-profit associations.
US SIF is supported in its work by the US SIF Foundation, a 501(C)(3) organization that undertakes educational and research activities to advance the mission of US SIF, including offering trainings for advisors and other financial professionals on the Fundamentals of Sustainable and Impact Investment.