Fiduciary Governance Blog

ESG, Proxy Voting and Engagement – Where DOL and SEC Regulation has Been and Where it May be Going

ESG, Proxy Voting and Engagement – Where DOL and SEC Regulation has Been and Where it May be Going

ESG investing continues to gain steam with investors and asset managers globally. US regulators, particularly the SEC and DOL, are catching up. George Michael Gerstein and Sara Crovitz will update you on the state of current DOL and SEC regulation around ESG and proxy voting/engagement and what may be coming from the regulators under new leadership.

When: February 25, 2021. 2 p.m. – 3 p.m.

Who Should Attend

All independent directors, CCOs, and professionals in the fund industry are welcome to participate.

Forum webinars are closed to the media.

Speakers

George Michael Gerstein, Co-Chair, Fiduciary Governance and Environmental, Social and Governance

Sara P. Crovitz, Partner

Register

George Michael Gerstein & Sara Crovitz Join The Activist Insight Podcast to Discuss ESG Developments

George Michael Gerstein and Sara P. Crovitz, members of Stradley’s new environmental, social & governance group, joined host Kieran Poole of The Activist Insight Podcast to discuss recent developments out of the DOL and SEC regarding ESG. The Activist Insight Podcast, which is produced by Insightia, can be found on all major podcast platforms, including Apple Podcasts, Spotify and YouTube.

              

 

 

Comprehensive Analysis and Application of the SEC’s New Marketing Rule

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I. Comprehensive Application of the SEC’s New Marketing Rule

On December 22, 2020, the U.S. Securities and Exchange Commission (the “SEC” or “Commission”) adopted significant amendments to the advertising and solicitation rules applicable to registered investment advisers under the Investment Advisers Act of 1940, as amended (the “Advisers Act”), as well as amendments to related rules governing recordkeeping and Form ADV (collectively, the “Amendments”).  Specifically, the SEC simultaneously amended Rule 206(4)-1 (the current “Advertising Rule”) and rescinded Rule 206(4)-3 (the current “Cash Solicitation Rule” and, together with the Advertising Rule, the “Existing Rules”) to create a new combined marketing Rule 206(4)-1 (the “Marketing Rule” or the “Rule”), which will comprehensively govern both advertising activities of advisers, as well as how they enter into solicitation/referral arrangements. The SEC also amended Rule 204-2 (the “Books and Records Rule”) under the Advisers Act to account for new recordkeeping obligations relating to the Rule and amended Form ADV to request additional information from advisers regarding their marketing activities.

The Amendments will become effective 60 days after publication in the Federal Register, and the Commission has adopted a compliance date 18 months from the effective date. As of the date of this publication, the Amendments have not yet been published in the Federal Register. After publication, early compliance is permissible, but advisers who choose to comply with the Rule prior to the compliance date must comply with all aspects of the Amendments.  The Rule does not apply to the marketing activities of registered investment companies or business development companies, as their marketing activities are covered under other rules. However, it does extend to marketing communications to private fund investors. Read the full White Paper here.