Regulatory Alerts2023-01-03
Added · Updated
SEC Memorandum Circular No. 11, Series of 2022: Rules on Sustainable and Responsible Investment Funds
These rules establish requirements for investment companies seeking to qualify as Sustainable and Responsible Investment (SRI) Funds, mandating that at least two-thirds of their net asset value be allocated to sustainable investments. The regulations enforce strict naming conventions to prevent greenwashing and require comprehensive disclosures in prospectuses, marketing materials, and periodic reports regarding ESG strategies, criteria, and risks. Fund managers must notify the Commission within five business days of any breach of the ESG investment threshold or inconsistency with sustainable objectives, with a thirty-business-day window to rectify such issues or face disqualification.
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