UKSIF welcomes FCA’s Sustainability Disclosure Requirements

UK Sustainable Investment and Finance Association (UKSIF) Chief Executive, James Alexander, has welcomed the FCA’s policy statement on its Sustainability Disclosure Requirements (SDR) and investment labels regime.

UKSIF is the leading membership body for sustainable finance in the UK, representing over 300 members managing £19tn in global assets under management.

UKSIF Chief Executive, James Alexander, said:

“This is an important moment in our industry’s efforts to build greater confidence and trust among retail investors in the UK’s evolving sustainable investing market. We believe that the new investment labels can address concerns often raised by savers over their funds’ sustainability claims and profile.

“We are pleased to see a number of important revisions to the regime to address potential implementation challenges and promote greater transparency for savers. These include refining some of the underlying criteria for the labels and the operation of the marketing rules, as well as direct recognition of the important role of multi-asset funds and blended strategies under the regime.

“Going forward, we would like to see the FCA consider convening the Disclosures and Labels Advisory Group (DLAG), or a similar industry group, on an ongoing basis to help the regime’s implementation in the market and monitor greenwashing risks. Crucially, the regulator should continue to closely engage with regulatory authorities in overseas markets to positively shape jurisdictions’ approaches to disclosures and fund labels and promote international harmonisation.”