OC's YouAttest Integrates With JumpCloud
Know Your Worth: Valuation & Negotiation 6/7/22

KPMG's Thoughts on SEC Proposed Rules for Investment Companies

Four quick reactions from KPMG on SEC proposed rules for investment companies

The SEC has proposed amendments related to the Investment Company Act's Names Rule, as well as enhanced ESG disclosure requirements for registered investment companies, business development companies, registered investment advisers and certain unregistered advisers.  KPMG

These proposals, which are subject to a comment period, seek to enhance transparency and help ESG-conscious investors gain greater clarity about their holdings.

A quick-hitting summary of this proposed regulation and its potential impact on financial services firms is available here.

Read more in the latest edition of Defining Issues: SEC investment management proposals focus on ESG at kpmg.us.

Here are four reactions from KPMG leaders:

The SEC’s proposed rule for investment advisers and certain investment companies is wide in scope and aims to provide consistent standards for ESG disclosures in a manner that investors will find decision useful. Given that no consistent standard exists today, this is quite a significant proposal. In addition, the proposal requires certain environmentally focused funds the obligation to disclose information regarding the GHG emissions associated with the portfolio. It’s also worth noting that while the ESG considerations may have provided an impetus to propose the amendments, the changes to the Names Rule specifically are not just confined to ESG strategies and naming. - Sean McKee, National Audit Leader, Public Investment Management

When it comes to ESG disclosures, detailed descriptions matter. Today, the SEC proposed amendments to rules and disclosure forms which would require registered investment companies, business development companies, registered investment advisers and certain unregistered advisers to enhance disclosure used in marketing materials, offering documents and other documents. If you have strategies rooted in ESG, it’s a good time to make sure your disclosure is clear to investors. - Matthew Giordano, Deputy Lead Partner, Public Investment Management

The SEC's proposals related to the Investment Company Act’s Names Rule and enhanced disclosures for ESG reflect significant steps taken by the Commission to bring investors enhanced transparency surrounding fund strategies. In the absence of a universally accepted definition of ESG, the SEC is seeking to combat greenwashing by placing increased accountability on investment advisers to disclose, in sufficient detail, the investment process used to arrive at decisions made within a portfolio. The goal is to ensure that investment decisions are consistent with the name of a fund and investors’ expectations. - Larry Godin, Principal and National Practice Lead for Asset and Wealth Management, Regulatory Risk and Compliance

These proposals are a natural follow on to the SEC climate-related disclosure proposals released on March 21 as the information produced by corporations will be vital to being able to satisfy these disclosure requirements. - Maura Hodge, Audit Leader, KPMG US IMPACT


Media Contact
Elizabeth Lynch
Manager, Corporate Communications, KPMG US
+1 201-505-6316

SOURCE: https://info.kpmg.us/news-perspectives/industry-insights-research/kpmg-reactions-sec-investment-companies.html

WHAT’S YOUR NEWS? - Submit your company news, deals, opinions, or job listings here for FREE PUBLICITY.

See the Directory of OC StartupsJoin the OCSC to list your company, too!

AND - Subscribe for FREE OC Startup News here!



Verify your Comment

Previewing your Comment

This is only a preview. Your comment has not yet been posted.

Your comment could not be posted. Error type:
Your comment has been saved. Comments are moderated and will not appear until approved by the author. Post another comment

The letters and numbers you entered did not match the image. Please try again.

As a final step before posting your comment, enter the letters and numbers you see in the image below. This prevents automated programs from posting comments.

Having trouble reading this image? View an alternate.


Post a comment

Comments are moderated, and will not appear until the author has approved them.

Your Information

(Name and email address are required. Email address will not be displayed with the comment.)