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  • Writer's pictureASA Newsroom

ASA Statement on SEC’s Rulemaking on Investment Company Act Names Rule

WASHINGTON, DC – The American Securities Association (ASA) today issued the following statement from Chris Iacovella, President and CEO of ASA, on the U.S. Securities and Exchange Commission (SEC) adopting amendments to Rule 35d-1, the fund “Names Rule”, under the Investment Company Act of 1940:

“Today’s rulemaking is another example of the Commission adopting sweeping, disruptive, and duplicative proposals that will confuse investors and create numerous problems for firms and the SEC alike. This rulemaking is deeply troubling because it grants the SEC unfettered authority to determine what investments are worthy to be included in a fund’s portfolio,” said ASA President & CEO Chris Iacovella.

In August of 2022, ASA submitted a comment letter to the SEC in response to the Investment Company Act Names Rule proposal.

ASA’s comment letter cited a FINRA Foundation/National Opinion Research Center survey, which “found that when making investment decisions, 54% of investors “never or rarely” consider environmental impacts and 44% “never or rarely” consider a companies’ actions or statements related to social issues. And a stunning 25% of investors also believe that “ESG” stands for “earnings, stock, growth.”


About the American Securities Association

American Securities Association, based in Washington, DC, represents the retail and institutional capital markets interests of regional financial services firms who provide Main Street businesses with access to capital and advise hardworking Americans how to create and preserve wealth. ASA’s mission is to promote trust and confidence among investors, facilitate capital formation, and support efficient and competitively balanced capital markets. This mission advances financial independence, stimulates job creation, and increases prosperity. The ASA has a geographically diverse membership of almost one hundred members that spans the Heartland, Southwest, Southeast, Atlantic, and Pacific Northwest regions of the United States.


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