Response to the FCA’s Finalised Anti-Greenwashing Rule and Guidance
In April 2024, the FCA published its finalised guidance on the ‘Anti-Greenwashing Rule’. Following the announcement, Oscar Warwick Thompson, Head of Policy and Regulatory Affairs at UKSIF commented the following:
On Anti-Greenwashing rule and guidance
“We are pleased to see today’s updated guidance from the FCA on its ‘anti-greenwashing‘ rule which delivers clarity on some areas which had previously caused uncertainty, though we do have concerns on the tight implementation timetable.
We welcome clarifications around the rule’s application to products and services’ sustainability claims and the additional good practice case studies, which will be helpful to firms as the 31st of May deadline now rapidly approaches.
We fully support the FCA’s efforts to address greenwashing risks and introduce high-quality standards to address exaggerated and misleading claims that fail to meet consumer expectations. The turnaround for implementation is very tight, and we will continue to work with our members to help them get to grips with this guidance and the rule.
On portfolio management services:
“It’s great to see FCA consulting on the extension of the SDR to portfolio management services, which provides clarity for an important part of the investment market. We saw risks in the original proposals in the CP on potentially very few portfolio management services being able to qualify for the labels. Now we are committed to working with the FCA and others to ensure other gaps are addressed, such as gaining clarity on the approach to overseas funds and pensions products.”
You can read the full guidance at the link below.
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