On 1 November 2024, the Financial Conduct Authority (“FCA”) updated its sustainability disclosure and labelling regime website and added detailed examples of pre-contractual disclosures to its Sustainability Disclosure Requirements (“SDR“) guidance. The SDR and investment labels regime enters into force on 2 December 2024 and firms have been able to use investment labels since 31 July 2024, as we have reported here.
The non-exhaustive examples are based on the FCA’s experience of applications to date and provide firms with a practical insight into the types of information that should be disclosed in the pre-contractual documentation of funds seeking to use sustainability labels on investment products. The examples provided illustrate how firms can effectively communicate their sustainability credentials in a clear and consistent manner, ensuring that these labels align with regulatory expectations and meet transparency standards. The FCA’s guidance aims to standardise sustainability disclosures and reduce the risk of greenwashing.
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