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ARTICLE · 05 MAY 2023

FCA Delays Introduction Of Sustainability Disclosure Requirements

Hogan Lovells Cadwalader
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The delay, the FCA explained, will enable it to consider the significant response to its consultation on the new rules.

United KingdomFinance and Banking

The UK Financial Conduct Authority ("FCA") has announced that its widely-anticipated Policy Statement in response to the Sustainable Disclosure Requirements (SDRs) and investment labels consultation will now be published in Q3 2023 instead of H1 2023, and that the proposed effective dates will be adjusted accordingly. The consultation was motivated by a concern on the part of the FCA that "firms are making exaggerated or misleading sustainability-related claims about their investment products; claims that don't stand up to scrutiny (greenwashing)." The FCA's proposals subject to the consultation were intended "to build transparency and trust by introducing labels to help consumers navigate the market for sustainable investment products, and ensuring that sustainability-related terms in the naming and marketing products are proportionate to the sustainability profile of the product."

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