WASHINGTON, D.C. – The Securities and Exchange Commission (SEC) today voted to finalize the Investment Company Names Rule, aimed at addressing investment company names that are likely to mislead investors about an investment company’s investments and risks. Investment company names include those of mutual funds, ETFs and business development companies, including environmental, social and governance funds. In response, Jon Golinger, democracy advocate with Public Citizen, issued the following statement:
“The SEC took a major step to protect investors from getting defrauded by swindlers peddling greenwashed and misleading funds, giving consumers clarity when they invest. The ESG investment framework has been one of the fastest growing investment classes in the past decade, and it is past time for the SEC to step in and require truth in labeling to protect investors from misleadingly named funds.
“In an investment marketplace that evolves at warp speed, retirees, workers, and everyday investors who want to put their money into sustainable investments rely on the SEC to take actions like this to keep the marketplace honest and stop the fraudsters from scamming consumers.”
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