Nathaniel Lalone shares his thoughts with Reuters, CityWire Wealth Manager, among others, on a report from the UK Financial Conduct Authority (FCA) indicating that numerous retail investment funds lack accuracy in labeling their sustainability features. This comes as trillions of dollars have been invested in funds emphasizing their environmental, social, and governance (ESG) credentials, raising concerns among regulators about 'greenwashing' — the risk of investors being misled by exaggerated or false climate-friendly claims. Nate indicated that trusting sustainable funds is critical for reaching Britain's net-zero targets. "This report shows that while progress has been made, much work remains to be done. Market participants should be prepared for the FCA to have little patience for poor behaviors in this space."
"Many retail funds fall short in sustainability labelling, UK watchdog says," Reuters, November 16, 2023
"FCA to ESG funds: Do more to explain oil and mining holdings," CityWire Wealth Manager, November 16, 2023
"Work required to embed Guiding Principles for ESG investment funds, FCA finds," GRIP, November 16, 2023
*Subscription may be required for article access.
London
