UKSIF comment, FCA’s consultation on SDR and investment labels

A quote from UKSIF’s CEO, James Alexander, on the FCA’s consultation on sustainability disclosures and investment labels. The deadline for stakeholders to respond to the FCA’s consultation is 25 January, and the regulator’s proposed measures seek to address ‘greenwashing’ in the market, while building confidence amongst retail savers and institutional investors in sustainable investments.

“We are very pleased to respond today to the FCA’s consultation on sustainability disclosures and investment labels. This marks an important milestone in advancing the UK’s objective to be a global leader in the fast-evolving sustainable investing market.

We are strongly supportive of many aspects of the proposed approach, though of course there are areas for the FCA to carefully consider tweaking following this consultation phase. This includes the labels’ applicability across a broad range of asset classes beyond equities, the treatment of fund of funds, and certain aspects of the qualifying criteria, particularly for the ‘Improvers’ category. Overall, we believe the latest proposals reflect a strong and positive direction of travel for the UK’s market and savers following the Discussion Paper. We remain optimistic that the upcoming regime will contribute to rebuilding trust among savers in the sustainable investment choices available to them, and delivering the ‘high bar’ for funds seeking to make sustainability claims.

We look forward to working with the FCA, the Disclosures and Labels Advisory Group (DLAG), and our members to promote the regime’s consistent implementation, learning from the experience of international frameworks, while ensuring it can help shape jurisdictions’ approaches in the coming years.” —James Alexander, Chief Executive, UK Sustainable Investment and Finance Association (UKSIF)