Lack of uniformity throws confusion into ESG regs (IGNITES)

Sets of European regulatory measures dictating how fund managers name ESG funds are causing confusion in determining what guidelines to follow. Regulations proposed by the European Securities and Market Authority (ESMA) and those of the Sustainable Finance Disclosure Regulation (SFDR) lack consistency and flexibility for fund ESG criteria. The regulations would directly impact US fund managers distributing products in the European Union. FrontLine Compliance Founder and President Amy Lynch states that the lack of uniformity will make it very hard for firms that operate globally in various jurisdictions to stay in compliance with marketing materials utilized for ESG fund offerings. Additionally, she believes that without the clarity and continuity of the regulations globally, the SEC has been hesitant to finalize proposed ESG rules for advisers and funds under its oversight. See IGNITES (subscription required), “European Rules for ESG Funds ‘Inject Uncertainty’ in Marketplace”