The Securities and Exchange Commission (SEC) could face pressure to revise its ESG funds rule as regulators in the European Union recently called for simplifying standards in that market.
Asset management partner George Raine told Ignites that the call from EU rulemakers "puts some wind in [SEC critics'] sails."
"If the commissioners are looking abroad and they're seeing this type of development, it certainly wouldn't surprise me if it helped push over the line a finalized compromise rule that helps firms put a little bit of flexibility into how they categorize their funds," he said.
"The prescriptive disclosure standards have some real limitations in the ESG space. It struck me that there seems to be a call for more flexibility and less detail in having the regulations make sense for their own vitality and longevity," George said.
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