To help you understand what is going on with regulation of the finance and investing sectors and what we expect to happen in the future, our highly experienced Kiplinger Letter team will keep you abreast of the latest developments and forecasts (Get a free issue of The Kiplinger Letter or subscribe). You'll get all the latest news first by subscribing, but we will publish many (but not all) of the forecasts a few days afterward online. Here’s the latest…
Financial regulators are cracking down on misleading fund names. The Securities and Exchange Commission (SEC) recently adopted rules to prevent, among other things, misleading or deceptive claims by funds that use ESG factors — short for environmental, social and governance — when making investments. Per the SEC, a "fund’s name is an important marketing tool and can have a significant impact on investors’ decisions when selecting investments."
The rules come amid mounting concerns that some funds have misled shareholders over what’s in their holdings, a practice known as 'greenwashing' in order to cash in on the popularity of ESG investment strategies, a $2.8 trillion asset class now.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The rules broaden existing requirements governing fund names. Under a 2002 rule, if a fund name suggests a focus on certain asset classes or regions, it must invest at least 80 percent of its holdings in such assets. Since then, the size of assets in funds has grown from $7.2 trillion to $28.2 trillion, and fund names have morphed to reflect so-called thematic strategies.
The new SEC rule extends the 80 percent requirement to descriptive language in many fund names, such as growth, value and ESG, but funds can still come up with their own definition for ESG. So, some critics say the SEC rules will do little to curtail greenwashing by unscrupulous managers.
This forecast first appeared in The Kiplinger Letter, which has been running since 1923 and is a collection of concise weekly forecasts on business and economic trends, as well as what to expect from Washington, to help you understand what’s coming up to make the most of your investments and your money. Subscribe to The Kiplinger Letter.
Related Content
-
Amex Platinum Just Got More Expensive: $895 Fee and $3,500 in Perks ExplainedAmerican Express raises the Platinum Card’s annual fee to $895 and expands its perks. We break down the changes so you don’t have to.
-
Falling Interest Rates: What They Mean for Homeowners, Savers and InvestorsAs interest rates fall, homeowners may celebrate while savers feel the pinch. Here’s what the change could mean for your money.
-
Small Businesses Are Racing to Use AIThe Kiplinger Letter Spurred on by competitive pressures, small businesses are racing to adopt AI. A recent snapshot shows the technology’s day-to-day uses.
-
How AI Puts Company Data at RiskThe Kiplinger Letter Cybersecurity professionals are racing to ward off AI threats while also using AI tools to shore up defenses.
-
Trump's Economic InterventionThe Kiplinger Letter What to Make of Washington's Increasingly Hands-On Approach to Big Business
-
AI Start-ups Are Rolling in CashThe Kiplinger Letter Investors are plowing record sums of money into artificial intelligence start-ups. Even as sales grow swiftly, losses are piling up for AI firms.
-
What is AI Worth to the Economy?The Letter Spending on AI is already boosting GDP, but will the massive outlays being poured into the technology deliver faster economic growth in the long run?
-
Kiplinger Special Report: Business Costs for 2026Economic Forecasts Fresh forecasts for 2026, to help you plan ahead and prepare a budget on a range of business costs, from Kiplinger's Letters team.
-
Mutual Funds Are About to Get the ETF Treatment. Here's What It Means for InvestorsThe SEC is expected to decide soon whether mutual funds from dozens of providers can be offered as ETF share classes.
-
Trump-Era Regulations Will Broaden Access to CryptoThe Kiplinger Letter The president wants to make the U.S. the leader in digital assets.
