PE Law Report Quotes Brian Daly in Second Part of SEC ESG Article

Akin Gump investment management partner Brian Daly was quoted in the second half of a Private Equity Law Report article on the Securities and Exchange Commission’s (SEC) proposed environmental, social and governance (ESG) disclosure rules (to read his quotes in part one of the article, click here).

The article, “SEC Proposed ESG Rules: Forecasting the Private Fund Industry’s Response and Offering Compliance Tips (Part Two of Two),” focuses on forecasting how the private funds industry will approach complying with these proposed rules, sharing tips on how fund managers can prepare to adopt the requirements, and estimating the likelihood of the proposed rules’ adoption.

Daly discusses how the SEC perceives fund managers’ decision process and how that perception is less well aligned with the reality for private equity and private credit managers, managers’ likely interpretation of the SEC’s definition of “ESG integration” in ESG disclosures on Form ADV, and recommendations for fund managers in vetting the statements made in their fund documents and marketing materials and verifying that their funds’ investment decision making matches their disclosures.

Daly closes by noting that there are factors that could compel the SEC to slow down its ESG efforts: “A number of other high-priority SEC rule proposals were in the pipeline ahead of the Proposal, and the pipe is only so wide.”

To read the full article, click here.