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ARTICLE · 29 JUNE 2023

Navigating The ESG Landscape: Practical Insights For Investment Fund Managers

McCarthy Tétrault
McCarthy Tétrault
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ESG investment funds represent a growing business opportunity for investment fund managers, with concurrent regulatory and litigation risks.

CanadaFinance and Banking
Canadian Securities Regulatory Monitor
Canadian Securities Regulatory Monitor
Sean Sadler
Sean Sadler
Kevan Hanowski
Kevan Hanowski
Cristian Blidariu
Cristian Blidariu
Sonia Struthers
Sonia Struthers
Shane D'Souza
Shane D'Souza
Author LinkedIn connections

ESG investment funds1 represent a growing business opportunity for investment fund managers, with concurrent regulatory and litigation risks. This article provides investment fund managers with practical guidance to understand and mitigate such risks.

Regulatory scrutiny is increasing: three settlements and counting

The starting point for any regulatory or litigation risk against an investment fund manager will be its ESG investment fund's prospectus, other disclosure required by securities law, and sales communications, including website disclosures.

In Canada, the adequacy and accuracy of disclosure concerning ESG investment funds has come under increasing regulatory scrutiny. In April 2023, staff of the Ontario Securities Commission ("OSC"), which regulates most investment funds in Canada, cautioned funds that consider ESG to a limited extent that a fund's prospectus and sales communications should "accurately reflect the extent to which a fund is focused

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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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