Regulatory Alerts2023-01-03
SEC Memorandum Circular No. 11, Series of 2022: Rules on Sustainable and Responsible Investment Funds
The Securities and Exchange Commission issued these rules to regulate Sustainable and Responsible Investment Funds and prevent greenwashing by mandating strict disclosure and reporting standards. The regulations require funds to allocate at least two-thirds of their net asset value to ESG-aligned investments and adhere to specific naming conventions and sustainability principles. Fund managers must provide comprehensive prospectus disclosures, maintain regular monitoring, and rectify any breaches of ESG thresholds within thirty business days to maintain their qualified status.
Share