PIMFA welcomes FCA proposals for Sustainability Disclosure Requirements

29 November 2023

 

PIMFA welcomes FCA proposals for Sustainability Disclosure Requirements

 

PIMFA, the trade association for wealth management, investment services and the financial advice and planning industry has welcomed the Financial Conduct Authority’s (FCA) proposals for the Sustainability Disclosure Requirements (SDR) and looks forward to playing a leading role in the proposed independent working group for the advice industry to help build on existing capabilities in sustainable finance.

 

Maja Erceg, Senior Policy Adviser at PIMFA, commented: “We are pleased that the Financial Conduct Authority (FCA) has listened to the industry’s concerns around the Sustainability Disclosure Requirements (SDR) and made several changes to the original proposals, including the delaying of the implementation date for the anti-greenwashing rule and supplementing it with new guidance.

 

“Investment labels will help match investors with the funds that are right for them, and the added Sustainable Mixed Goals label will address the problem of funds with multi-asset strategies.  

 

“We welcome the changes to the initial proposals for the naming and marketing rules, which now allow sustainability-related terms for non-labelled funds. We note that the rules published today do not apply to portfolio management products and services yet and welcome the FCA’s intention to consult on a wider application of these rules. This is a clear acknowledgement of the difficulties in implementing the initially proposed criteria for discretionary strategies wishing to use a label.

 

“We are strongly supportive of the FCA plans to establish an independent working group for the advice industry to help build on existing capabilities in sustainable finance, including how the SDR and labels support their role. Advisers will play an essential role in helping consumers navigate the world of sustainability labels and will require more clarity about the expectations around taking sustainability matters into account in investment advice and suitability. We look forward to actively supporting the FCA in this regard.”

 

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NOTES TO EDITORS

About PIMFA – the Personal Investment Management & Financial Advice Association

• PIMFA is the trade association for firms that provide wealth management, investment services and the investment and financial advice to everyone from individuals and families to charities, pension funds, trusts and companies.
• The sector currently looks after £1.65 trillion in private savings and investments and employs over 63,000 people.
• PIMFA represents both full and associate member firms. Full members provide a range of financial solutions including financial advice, portfolio management, as well as investment and execution services. They assist everyone from individuals and families to charities and pension funds, all the way to trusts and companies.  Associate members provide professional services to the PIMFA community.
• PIMFA  leads the debate on policy and regulatory recommendations to ensure that the UK remains a global centre of excellence in the wealth management, investment advice and financial planning arena. Our mission is to create an optimal operating environment so that its member firms can focus on delivering the best service to clients, providing responsible stewardship for their long-term savings and investments.
• PIMFA has made numerous recommendations to the FCA regarding the Future of Advice, the Future of Supervision and the FSCS levy – read more.
• PIMFA was created in 2017 as the outcome of a merger between the Association of Professional Financial Advisers (APFA) and the Wealth Management Association (WMA) with a history as a trade association since 1991 – read more.
• Find out more about PIMFA’s Diversity and Inclusion work – read more
• Further information can be found at pimfa.co.uk

Contact

For further information on this release or other press matters please contact:

Matthew West, PIMFA PR Manager – MatthewW@pimfa.co.uk, +44 (0)20 7382 0376

Sheena Gillett, PIMFA Communications & PR Director – sheenag@pimfa.co.uk, +44 (0)20 7011 9869