The Financial Conduct Authority (FCA) has affirmed its stance on combatting greenwashing and put forth a proposal to expand sustainability measures. The new regulation aims to safeguard consumers by ensuring that products and services marketed as sustainable accurately align with their claims. According to findings from the latest Financial Lives survey, there is notable consumer interest in sustainable finance. Eighty-one percent of surveyed adults express a desire for their investments to generate positive impacts alongside financial returns. This initiative supports the sector’s long-term growth and competitiveness by facilitating businesses in meeting consumer demand and empowering investors to make well-informed choices regarding sustainability-related financial products.
In addition, the FCA is seeking input on extending sustainability labeling and disclosure requirements to portfolio managers. These managers oversee investments on behalf of consumers, offering either standardized products or personalized services. The proposed regulations for portfolio managers closely resemble those introduced for asset managers in November 2023, encompassing:
- Product labels to enhance consumer understanding of the allocation of their investments.
- Naming and marketing standards ensuring that products can only claim positive environmental and social impacts when substantiated.
