Financial Markets and Funds Partner Neil Robson spoke with Grip regarding the Financial Conduct Authority's (FCA) announcement that it is granting firms temporary flexibility to comply with the "naming and marketing" rules under the Sustainability Disclosure Requirements (SDR) until April 2, 2025. This extension allows firms more time to meet the standards and make necessary changes regarding environmental, social and governance (ESG) marketing, especially for those using sustainability-related terms in their fund names. Neil welcomed the extension, stating, "The naming and sustainability rules will require firms that have ESG-indicators within their name to actually follow the referenced requirements, so for example, if a manager has a 'sustainable investment fund,' it will need to ensure that the majority of the investments it invests in are actually sustainable; so to divest from some investments will take time, particularly where they are illiquid — hence the FCA time extension."
"FCA extends deadline for labeling and marketing of sustainability products," Grip, September 11, 2024
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