Sustainability Disclosure Requirements (SDR) and investment labels
The FCA has released its Policy Statement detailing new measures to improve the trust and transparency of sustainable investment products and combat greenwashing.
The FCA has released its Policy Statement detailing new measures to improve the trust and transparency of sustainable investment products and combat greenwashing.
The FCA will introduce:
- Anti-greenwashing requirements for all authorised firms to ensure sustainability-related claims are fair, clear and not misleading.
- Four product labels aimed at helping investors better understand the products they’re investing in to improve consumer trust.
- Naming and marketing rules to ensure more accurate use of sustainability-related terms.
- Requirements aimed at ensuring consumer-facing information more accessible in terms of the sustainability features of a product.
- New product disclosure requirements; pre-contractual, ongoing product-level and entity-level disclosures; targeted at institutional investors and consumers seeking more information.
Please click the link to read more about the measures to import the trust and transparency of sustainable investment products and minimise greenwashing: Sustainability disclosure and labelling regime confirmed by the FCA | FCA
Author: Henry Davies, Head of Funds – Portfolio.
Henry is joint head of the Investment Funds Team with a focus on portfolio construction.