A Financial Conduct Authority crackdown on greenwashing among UK asset managers is “a matter of when, not if,” a partner at a City law firm has warned.

Despite a challenging market backdrop in 2022, investors have continued ploughing cash into ESG and sustainable funds. By the end of August, responsible funds collectively held £90.3bn, according to stats from the Investment Association, up 11% from a year ago and accounting for 6.4% of the £1.4tn UK industry total.