To ensure that securities investment trust enterprises (SITEs) that issue ESG funds will all be subject to consistent disclosure framework while strengthening that the prospectus for a fund of this type more comprehensively discloses its ESG investment policy, and with an eye to the fact that the bonds invested by high-yield bond funds are essentially non-investment grade, the FSC on 23 December 2022 amended Articles 6 and 13-1 of the "Regulations Governing Information to be Published in Prospectuses by Securities Investment Trust Enterprises Offering Securities Investment Trust Funds." Key points of the amended provisions are as follows:
1.Newly added provisions list items that must be printed on the cover of an ESG fund prospectus and the content that must be set out within, and state that the cover of a prospectus must disclose the page numbers where important sustainability-related information appears, and the URL of the webpage where periodic assessments information is posted, so that investors can quickly find this information; new provisions also require that prospectus content must state investment objectives and measurement standards; investment strategies and methods; investment portfolio and allocations; performance indicators; exclusion criteria; risk warnings; participation in stewardship; and how to check on regular disclosures and other information.
2.The Chinese term for "high-yield bond fund" was changed to "non-investment grade bond fund."