Portfolio Managers Will Be Covered By The Sustainability Disclosure Requirements

The Financial Conduct Authority (FCA) published its Consultation Paper on 23 April that sets out its updated proposals to extend the Sustainability Disclosure Requirements (SDR) and investment labels regime to portfolio management.

The FCA proposals are primarily aimed at wealth management services for individuals and model portfolios for retail investors and are likely to be introduced relatively swiftly.

Who is in scope?

The proposal is to extend the SDR to firms providing portfolio management services in a broad sense, including services provided to clients that involve managing investments or "private equity, or other private market activities". The latter services consist of either advising on investments or managing investments on a recurring or ongoing basis in connection with an arrangement whose predominant purpose is investment in unlisted securities. The services are only in scope when they have been carried out from an establishment maintained by the