The SEC Proposes ESG Rules for Certain Funds and Advisers

At an open meeting on May 25, 2022, the US Securities and Exchange Commission (SEC or Commission) approved two new proposals that will impact the fund and investment management industry. One of the proposals is directed solely at registered funds and business development companies (BDCs), while the other applies to registered funds, BDCs, registered investment advisers (RIAs) and exempt reporting advisers (ERAs). This article discusses both proposals, which are quite lengthy (coming in at over 550 pages in total).