US SIF Releases Statement On 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."