ESG Fund Launches in Doubt as Anti-Greenwash Rules Hit Hard (2)

Investment managers are likely to hold back from introducing more ESG funds as they try to gauge the risks posed by the new regulatory environment, according to Europe’s biggest fund association.

“I sense that we will observe a pause in the launch or repurposing of funds, pending further regulatory developments,” Marc-Andre Bechet, deputy director of the Association of the Luxembourg Fund Industry, told Bloomberg. That’s despite “pressure from distributors and intermediaries” to provide more sustainable products, he said.

The assessment follows a shift in the regulatory landscape around environmental, social and governance investing since the police raid on the ...