We set out our final rules and guidance to help consumers navigate the market for sustainable investment products.
What we are changing
We are introducing a package of measures to help consumers navigate the market for sustainable investment products.
We are introducing:
- An anti-greenwashing rule for all FCA-authorised firms to reinforce that sustainability-related claims must be fair, clear and not misleading. We are also consulting on supporting guidance.
- Naming and marketing rules for investment products, to ensure the use of sustainability-related terms is accurate.
- Four labels to help consumers navigate the investment product landscape and enhance consumer trust.
- Consumer-facing information to provide consumers with better, more accessible information to help them understand the key sustainability features of a product.
- Detailed information targeted at institutional investors and consumers seeking more information in pre-contractual, ongoing product-level, and entity-level disclosures.
- Requirements for distributors to ensure that product-level information (including the labels) is made available to consumers.
The regime will help underpin the UK’s position as a world-leading competitive centre for asset management and sustainable finance.
Who this is for
- Our anti-greenwashing rule applies to all FCA-authorised firms who make sustainability-related claims about products and services.
- The investment labels, disclosure and naming and marketing rules apply to UK asset managers.
- We have also introduced targeted rules for the distributors of investment products to retail investors in the UK.
We are committed to supporting firms and consumers as we move to a more sustainable future. We will continue to engage with stakeholders directly, including to help firms implement the rules.
We consulted on a package of proposed measures in CP22/20, which aim to inform and protect consumers, enhance competition, and improve trust in the market for sustainable investment products.
We have carefully considered the extensive consultation feedback, engaged with a broad range of stakeholders and carried out further consumer research to inform the final regime.