2022-11718: Enhanced Disclosures by Certain Investment Advisers and Investment Companies About Environmental, Social, and Governance Investment Practices

Summary

The Securities and Exchange Commission ("Commission") is proposing to amend rules and forms under both the Investment Advisers Act of 1940 ("Advisers Act") and the Investment Company Act of 1940 ("Investment Company Act") to require registered investment advisers, certain advisers that are exempt from registration, registered investment companies, and business development companies, to provide additional information regarding their environmental, social, and governance ("ESG") investment practices. The proposed amendments to these forms and associated rules seek to facilitate enhanced disclosure of ESG issues to clients and shareholders. The proposed rules and form amendments are designed to create a consistent, comparable, and decision-useful regulatory framework for ESG advisory services and investment companies to inform and protect investors while facilitating further innovation in this evolving area of the asset management industry. In addition, we are proposing an amendment to Form N-CEN applicable to all Index Funds, as defined in Form N-CEN, to provide identifying information about the index.

The agency’s own summary, as published.

What this changes

Amends 7 parts of the Code of Federal Regulations — the standing rules this notice rewrites.

• 17 CFR 200 Organization; Conduct and Ethics; and Information and Requests
• 17 CFR 230 General Rules and Regulations, Securities Act of 1933
• 17 CFR 232 Regulation S-T—General Rules and Regulations for Electronic Filings
• 17 CFR 239 Forms Prescribed Under the Securities Act of 1933
• 17 CFR 249 Forms, Securities Exchange Act of 1934
• 17 CFR 274 Forms Prescribed Under the Investment Company Act of 1940
• 17 CFR 279 Forms Prescribed Under the Investment Advisers Act of 1940