FCA confirms anti-greenwashing guidance and proposes extending sustainability framework

Summary:

The Financial Conduct Authority (FCA) is providing guidance to the industry to help them meet the new anti-greenwashing rule, which comes into effect on May 31, 2024. The rule aims to protect consumers by ensuring that sustainable products and services are accurately described. The FCA is also consulting on extending the requirements for sustainable investments to portfolio managers, making it easier for consumers to make informed decisions. The new rule includes product labels, naming and marketing requirements, and Sustainability Disclosure Requirements (SDR) to prevent greenwashing.