FCA warns bosses on 'poor quality' ESG fund launch applications

Guiding principles also published

Mike Sheen
clock • 3 min read
Head of asset management supervision at the FCA Nick Miller: "We want firms to communicate clearly and avoid making misleading claims"
Image:

Head of asset management supervision at the FCA Nick Miller: "We want firms to communicate clearly and avoid making misleading claims"

The Financial Conduct Authority (FCA) has warned asset managers about the “poor quality” of many ESG fund launch applications it receives, which it said “must improve”.

In response, the regulator has developed a set of guiding principles, informed by stakeholder liaison and consumer research, to help firms apply its existing rules and ensure ESG-related claims are "clear and not misleading". FCA consults on TCFD rules for contract-based schemes Head of asset management supervision at the FCA Nick Miller said in a letter to industry bosses, published today (19 July), that the regulator receives "a high volume" of applications for authorisation of funds with a sustainable focus, "many" of which are "poor quality" and "fall below our expectations". ...

To continue reading this article...

Join Investment Week

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Regulation

Investors look away from energy intensive sectors such as chemicals, metals and manufacturing.

'An investor's worst nightmare': Energy rationing spells greater chaos for supply chains

Business confidence falls

clock 05 August 2022 • 5 min read
Lee Robinson, founder and CIO, Altana Weath
ESG

Carbon trading: the big long

Time for a different hedge

Lee Robinson
clock 05 August 2022 • 4 min read
Roger Clarke, CEO, IPSX

Market deregulation is key to reinforcing the UK's position in the financial world

Austin Review

Roger Clarke
clock 05 August 2022 • 3 min read
Trustpilot