FCA SDR Consultation Closes in “Positive Direction” for UK Market

The UK Financial Conduct Authority’s (FCA) consultation on Sustainability Disclosure Requirements (SDR) and investment labels has closed. The passing of the deadline was seen as an important milestone in the UK’s sustainable investment journey. James Alexander, CEO at the UK Sustainable Investment and Finance Association, said that the “latest proposals reflect a strong and positive direction of travel for the UK’s market and savers”. However, there were areas highlighted which the investment community suggested need further changes. Investment consultancy firm Redington said that the SDR proposals should also apply to products marketed for institutional investors, including pension schemes. As it stands, the proposals would allow firms to market certain products as sustainable to institutional investors but not to retail clients. Edina Molnar, Vice President in Redington’s Investment Consulting team, said the firm would “also welcome additional clarity on definitions and the introduction of minimum safeguards to ensure the proposals’ robustness in relation to both to social and environmental sustainability”.  

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