The UK’s Financial Conduct Authority (FCA) reviewed compliance of fund managers with ESG and sustainable investment requirements, finding many firms don’t meet expectations and products often don’t align with sustainability goals. The FCA’s review precedes final rules and guidance on Sustainability Disclosure Requirements and investment labels. These regulations aim to enhance transparency, common standards, and investor understanding of the sustainable investment landscape while reducing greenwashing risks. The FCA noted progress in areas like ESG scoring systems but emphasized the need for further improvement, particularly in disclosure to retail investors. The FCA aims to ensure clear understanding of investments for investors.
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