Green light for sustainable investment labelling regime

To support environmental and social goals, consumers need to be able to invest their hard-earned cash with confidence that financial products 'do what they say on the tin'. As the FCA confirms its Sustainability Disclosure Requirements (SDR) and investment labels,Charlotte Hilland Daniel Hirschfield explore the regime and its impact on the investment management industry.

Charlotte Hillis a partner and head of the Financial Services Regulatory group at Taylor Wessing in London, whereDaniel Hirschfieldis senior counsel - Knowledge and Struan Clarkis an associate. Contact them onc.hill@taylorwessing.com, d.hirschfield@taylorwessing.com and st.clark@taylorwessing.com.

Background

In October 2022, the Financial Conduct Authority published a consultation paper on SDR. [2] The consultation paper proposed sustainable investment labels, disclosure requirements and restrictions on the use of sustainability-related terms in investment product naming and marketing.