Dechert Files Comments in Response to Two ESG-Related Proposed SEC Rules

On August 16, 2022, Dechert LLP filed two comment letters with the SEC in response to two recently proposed rules that would overhaul the ESG disclosure framework for funds and advisers and the naming convention for funds. The SEC solicits these comments to help guide and inform its staff throughout the important rulemaking process.

The first letter was in response to the SEC’s proposed rule requiring enhanced disclosures by certain funds and U.S. investment advisers. It recognizes the SEC’s legitimate interest in promoting a “consistent, comparable, and reliable” disclosure framework that facilitates informed decision-making related to ESG investment product and strategy offerings, and it includes comments intended to inform the SEC’s work as it works to finalize this important rulemaking. 

Read “Dechert LLP Comment Letter - ESG Proposal (File No. S7-17-22),” authored by Julien Bourgeois, Brenden P. Carroll, Sonia Gioseffi, Mark Perlow, Tony Zacharski and Alex Karampatsos, with additional assistance from Jannay Johnson, Tyler Payne, Morgan Willard and J.D. Williams. 

Dechert’s second letter was submitted in response to the SEC’s proposed amendments to the Names Rule —which would clarify and expand the requirement for certain funds to adopt a policy to invest at least 80% of their assets in accordance with the investment focus that the fund’s name suggests; establish a newer test for compliance with that investment policy; introduce new requirements surrounding the treatment of derivatives and recordkeeping; and impose additional prospectus disclosure and Form N-PORT reporting requirements. The letter acknowledges the care and effort the SEC put into the release and provides comments relating to interpretive questions that could be raised by the proposal and other points intended to inform the views of the SEC about this rulemaking.

Read "Dechert LLP Comment Letter - Investment Company Names Proposal (File No. S7-16-22),” authored by Philip T. Hinkle, Corey Rose, Matthew Barsamian and Nadeea Zakaria, with additional assistance from Aaron Withrow, James Catano, Jim Curtis, Claire Hinshaw and Paul Stevens.