FCA publishes SDR and Investment Labels rules
The FCA has published new rules and guidelines on Sustainability Disclosure Requirements (SDR) and investment labels (PS 23/16) and a consultation on guidance on the anti-greenwashing rule (GC23/3).
Who will this impact?
The FCA’s anti-greenwashing rule applies to all FCA-authorised firms who make sustainability-related claims about products and services.
The investment labels, disclosure and naming and marketing rules apply to UK asset managers.
There are also targeted rules for the distributors of investment products to retail investors in the UK.
What do the new rules and guidance cover?
An anti-greenwashing rule for all FCA-authorised firms to reinforce that sustainability-related claims must be fair, clear and not misleading. We are also consulting on supporting guidance.
Naming and marketing rules for investment products, to ensure the use of sustainability-related terms is accurate.
Four labels to help consumers navigate the investment product landscape and enhance consumer trust.
Consumer-facing information to provide consumers with better, more accessible information to help them understand the key sustainability features of a product.
Detailed information targeted at institutional investors and consumers seeking more information in pre-contractual, ongoing product-level, and entity-level disclosures.
Requirements for distributors to ensure that product-level information (including the labels) is made available to consumers.
When will the rules become effective?
The anti-greenwashing rule will come into effect from the 31 May 2024.
Firms can use the investment labels from 31 July 2024.
The naming and marketing rules for asset managers come into effect from 2 December 2024.
Khepri Webinar: SDR, Investment Labels and Greenwashing
Watch our recording as we discuss what these rules mean for asset managers, distributors of investment funds and all other firms that make claims about the sustainability characteristics of their products or services. We are joined by Richard Barker from Counteract who shared his perspective of early stage investment in SDR, investment labels and greenwashing.
