FCA may extend anti-greenwashing to PMs

The FCA says it is consulting on extending to portfolio managers the requirements on how sustainable investments are labelled ahead of the their anti-greenwashing rule coming into force on 31 May.

The FCA says the proposed labelling and Sustainability Disclosure Requirements (SDR) for portfolio managers are very similar to those introduced for asset managers in November 2023. They include product labels and marketing requirements so products can only be described as having positive outcomes on the environment and/or society when those claims can be backed up.

Sacha Sadan, Director of Environmental, Social and Governance, FCA, said, ‘Confirming the new anti-greenwashing guidance and our proposals to extend the Sustainability Disclosure Requirements and investment labels regime are important milestones that maintain the UK’s place at the forefront of sustainable investment. Our good and poor practice anti-greenwashing examples will help firms market their products in the right way. We continue to work closely with the ASA and CMA to address greenwashing”.