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FCA Sustainability disclosure and labelling regime (SDR) - final rules/policy statement - published 28 Nov 2023

  • 1.  FCA Sustainability disclosure and labelling regime (SDR) - final rules/policy statement - published 28 Nov 2023

    Posted 28-11-2023 15:12
    Edited by James Doyle 28-11-2023 15:15

    The FCA has published its Policy Statement on Sustainability Disclosure Requirements (SDR) and investment labels.
    FCA press release: Sustainability disclosure and labelling regime confirmed by the FCA | FCA

    Some initial highlights from the Policy Statement:

    • Anti-greenwashing rule for all FCA authorised firms: the anti-greenwashing rule will apply from 31 May 2024, so this is six months more than originally foreseen. The FCA has published a consultation on 'Guidance on the Anti-Greenwashing rule' with a deadline of 26 January to respond. 
    • Four labels:  (not three!)  Sustainability Focus, Sustainability Improver and Sustainability Impact, along with a fourth label titled 'Sustainability Mixed Goals' to accommodate multi-asset funds. 
    • Disclosure: for funds that opt to use a label, there is a new stand-alone disclosure document for sustainability-related information. Without prescribing a template, the FCA specifies the types of information that must be included. Consumer-facing disclosure for products not using labels but with sustainability-related terms in their names and marketing must include a statement to clarify that the product does not have a label.  
    • Naming and marketing rules: the restrictive marketing rules have been reduced from those consulted on, but there will still be obligations on firms that use sustainability-related terms in fund names that don't get a label.  
    • Distributors: distributors must communicate the labels and provide access to consumer-facing disclosures to retail investors and will have obligations to include a notice on overseas products to clarify that they are not subject to SDR. 


      Implementation timelines:



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    James Doyle
    Director, Green Finance, Investment Management
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  • 2.  RE: FCA Sustainability disclosure and labelling regime (SDR) - final rules/policy statement - published 28 Nov 2023

    Posted 28-11-2023 19:13

    Thanks for sharing James. This will certainly generate a debate on the implementation of the new SDR requirements.

    I also find it relevant to note the alteration in the approach to the prohibition of certain sustainability-related language.

    Looking forward to hearing more from the other members of the group.



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    Denise Gomes de Santana
    Executive Director
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  • 3.  RE: FCA Sustainability disclosure and labelling regime (SDR) - final rules/policy statement - published 28 Nov 2023

    Posted 29-11-2023 09:25

    Evershed's overview not a bad place to start on key highlights and policy points: UK's FCA releases its Policy Statement on Sustainability Disclosure Requirements (SDR) and investment labels (eversheds-sutherland.com)



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    James Doyle
    Director, Green Finance, Investment Management
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    Original Message


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