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ARTICLE · 13 JUNE 2022

SEC Proposes New Rules

Pekin Bayar Mizrahi (in alliance with Norton Rose Fulbright)
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On May 25, 2022, US Securities and Exchange Commission ("SEC") proposed amendments to the rules in order to require investment funds and advisers to make more specific disclosures on their prospectuses,...

TurkeyCorporate/Commercial Law

SEC PROPOSES NEW DISCLOSURE REQUIREMENTS FOR INVESTMENT FUNDS AND ADVISORS

On May 25, 2022, US Securities and Exchange Commission (“SEC”) proposed amendments to the rules in order to require investment funds and advisers to make more specific disclosures on their prospectuses, annual reports and adviser brochures based on their environmental, social and governance (ESG) strategies. Through the proposed amendments, funds emphasizing a specific ESG impact of an investment or advisers marketing themselves as having an ESG focus will be obliged to make disclosures specifying the impact/practice and its progress. Additionally, SEC's proposal requires funds and advisers to include certain ESG reporting in certain forms to be submitted to SEC. Through such proposed amendments, SEC aims to protect investors against greenwashing practices. New proposed rules will be open for public comment for 60 days upon its publication in the Federal Register.

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