SEC to scrutinize money managers ESG disclosures, among other priorities, in 2022 (Law360)

Regulation that’s on tap for 2022 is pushing firms to review and update their compliance programs early this year. Regulators, including the SEC and FinCEN, are unveiling new initiatives targeting compliance with cybersecurity, AML, board diversity and ESG disclosures. With ESG regulation a top priority, SEC Chairman Gary Gensler has authorized a review of how money managers are determining their criteria to market themselves as “green” or “sustainable” when no current standardized criteria exists. FrontLine’s Founder and President Amy Lynch states that many large money managers are already creating their own internal, standardized ESG investing criteria. Ms. Lynch recommends a similar approach occur at all firms until actual rules are enacted. She adds that with ESG rulemaking already on the SEC agenda, this would help for now to deter the regulator from citing a firm for inconsistencies with ESG investing. See Law360 (subscription required), “4 Key Regulatory Areas That Could Weigh On Cos. In 2022“ Also see, Law360 Insurance Authority (subscription required), “Insurance Legislation And Regulation To Watch In 2022”