If it was ever easy to be the manager of an ESG fund, it certainly isn't any more.

Demand for these environmentally friendly investment options is skyrocketing, but scrutiny from the Securities and Exchange Commission is increasing along with it. Late last month, BNY Mellon paid the agency $1.5 million to settle a claim that it misled investors about how it applies ESG principles to some of its mutual funds. Also, the SEC released proposed regulations imposing new requirements on funds that advertise themselves as ESG.

Will all of this have a chilling effect that may halt or even reverse the rapid growth of this area of investing? To find out we, hear from two attorneys who represent fund managers that work on ESG investments.

George Raine and Robert Skinner are partners at the firm Ropes & Gray who specialize in the financial services industry. They spoke with Bloomberg Law's Andrew Ramonas about why the SEC is doing what it's doing, and why it's more important than ever for ESG fund prospectuses to be bulletproof.

 

Do you have feedback on this episode of Parts Per Billion? Give us a call and leave a voicemail at 703-341-3690.

If it was ever easy to be the manager of an ESG fund, it certainly isn't any more.
Demand for these environmentally friendly investment options is skyrocketing, but scrutiny from the Securities and Exchange Commission is increasing along with it. Late last month, BNY Mellon paid the agency $1.5 million to settle a claim that it misled investors about how it applies ESG principles to some of its mutual funds. Also, the SEC released proposed regulations imposing new requirements on funds that advertise themselves as ESG.
Will all of this have a chilling effect that may halt or even reverse the rapid growth of this area of investing? To find out we, hear from two attorneys who represent fund managers that work on ESG investments.
George Raine and Robert Skinner are partners at the firm Ropes &amp; Gray who specialize in the financial services industry. They spoke with Bloomberg Law's Andrew Ramonas about why the SEC is doing what it's doing, and why it's more important than ever for ESG fund prospectuses to be bulletproof.
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Do you have feedback on this episode of Parts Per Billion? Give us a call and leave a voicemail at 703-341-3690.

Parts Per Billion is Bloomberg Law's environmental policy podcast. We cover everything from air pollution, to toxic chemicals, to corporate sustainability, and climate change. The reporters from our environment desk offer an inside look at what's happening at Congress, in the courts, and at the federal agencies, and help explain the scientific and policy debates shaping environmental laws and regulations. Host: David Schultz

Parts Per Billion is an environmental policy podcast from Bloomberg Law.

Parts Per Billion

ESG Funds Are Finding It's Not Easy Being Green

https://api.omny.fm/orgs/e73c998e-6e60-432f-8610-ae210140c5b1/clips/1de57005-f796-4d0c-8bbe-aeae01463073/transcript

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