FCA launches disclosure regime for sustainable investments

Posted on December 10, 2023 by Editor

The UK’s Financial Conduct Authority (FCA) has announced a package of sustainability disclosure requirements and investment labels, aiming to improve trust and transparency around sustainable investment products and facilitate informed decision-making.

Research shows that investors are not confident that sustainability-related claims made about investments are genuine, explains the FCA. Sacha Sadan, Director of Environmental, Social and Governance, states: “We’re putting in place a simple, easy to understand regime so investors can judge whether funds meet their investment needs – this is a crucial step for consumer protection as sustainable investment grows in popularity.”

A Policy Statement sets out the new disclosure requirements, although these do not (yet) appear to be underpinned by a digital reporting framework. However, it emphasises the importance of interoperability with international standards and frameworks, as well as emerging regimes in other jurisdictions, and provides a mapping with Europe’s Sustainable Finance Disclosure Regulation (SFDR). It notes that the FCA intends to build on the disclosure requirements over time in line with UK and international developments.

Read more here and here.

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