In “Human Capital Proposals Coming: Ex-SEC Lawyer” and “D&I, Digitization, Innovation: The Fund Industry’s Future,” Ignites turned to investment management counsel and former Securities and Exchange Commission (SEC) attorney Walé Oriola for insight at the Investment Company Institute’s (ICI) 2022 Investment Management Conference.
When asked if factors may be disclosed on the issuer side that might be part of further environmental, social and governance (ESG) rulemaking, Oriola said to expect the human capital rulemaking proposal on the regulatory flex agenda. He also explained that it evaluates how companies treat employees and the social aspects related to ESG.
Oriola added that he thinks “human capital measurements will fit under the ESG umbrella.” He noted that Chair Gensler mentioned cybersecurity as part of governance, and boards of directors should pay attention. “I do see different rules coming out and the commission continuing to expand on the meaning of ESG over time.”
Oriola further spoke on some of the biggest changes in the fund space outside of the regulatory sector, highlighting diversity and inclusion and “finding ways to be more efficient.” He stated, “And I think cybersecurity continues to be a topic that fund boards and advisers, in particular the managers of those funds, will continue to grapple with over time.”