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FSC to introduce rules for ESG funds | Asia Asset Management


Taiwan’s financial regulator will soon introduce new rules to prevent greenwashing of environmental, social and governance (ESG) funds.
Fund managers will have to comply with a set of disclosure guidelines for launching new ESG funds, says Chen-Shan Chang, director general of the Financial Supervisory Commission’s (FSC) securities and futures bureau.
The new rules “are to prevent public misconception that ESG funds and greenwashing are the same thing”, he says in a statement on April 14.
Greenwashing refers to the practice of making exaggerated and unsubstantiated claims about how environmentally friendly a fund is to lure investors.
The FSC will announce details of the new rules in July. Chang says the regulator may follow Hong Kong’s ESG disclosure initiative. ....

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