The Financial Conduct Authority (FCA) has announced a delay to the planned publication of its new sustainability disclosure rules for asset managers in order to allow sufficient time to consider responses received as part of the consultation period.
In a March 29 press release, FCA revealed that it had received around 240 written responses prior to the consultation period closing on January 25. As it assesses the “significant response” the regulator now intends to publish the policy statement in the third quarter of this year. FCA had originally intended to publish its statement on the new requirements in the first half of 2023.
“We have sought international coherence with other regimes and will continue to consider how to further support compatibility, while emphasizing that we need robust standards for the UK to remain at the global forefront of sustainable investment,” the FCA statement explained.
The authority stressed that stated that consumers are “at the heart” of SDR and investment labels but must be able to trust sustainable investment products.
However, it was advised that the regime will also have to recognize any practical challenges that firms may have and will therefore consider its approach to marketing restrictions by refining the criteria for labelling different products, asset classes, and strategies.
“When we [FCA] publish the Policy Statement, we will also clarify matters such as that primary and secondary channels for achieving sustainability outcomes are not prescribed, and that we do not require independent verification of product categorization to qualify for a label,” the statement outlined.
FCA concluded that a strengthened regulatory framework for sustainability disclosure requirement for asset managers and ESG labelling rules for investment products, will increase opportunities and competition in the market, help foster growth, and the demand and supply of products that better suit consumers’ needs and preferences.