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ESG

Fund groups under pressure as ESG labelling regime looms

Phase one of SDR, the anti-greenwashing rule, comes into effect on 31 May

The FCA said the new measures aim to help boost trust in the sustainable investment market Hollie Adams/Bloomberg via Getty Images
The FCA said the new measures aim to help boost trust in the sustainable investment market Hollie Adams/Bloomberg via Getty Images

Fund groups are going on a hiring spree and racking up hefty legal bills as they gear up for the UK’s ESG fund labelling regime, with smaller boutiques in particular feeling the squeeze.

The Sustainability Disclosure Requirements is at the heart of the Financial Conduct Authority’s greenwashing crackdown and aims to improve transparency around sustainability claims, making it easier for retail investors to shop for green funds.

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