FCA launches disclosure regime for sustainable investments
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.
