FCA: SDR 'very different' regime to SFDR

Require 'more granular information'

Despite obvious comparisons between the UK's SDR consultation paper (published today, 25 October) and Europe's Sustainable Finance Disclosure Regulation (SFDR), the FCA is keen to clarify that "this is a very different regime".

The SFDR was introduced by the European Commission in March 2021 and imposes mandatory ESG disclosure obligations on asset managers. The key requirements of the disclosures are that firms adopt one of three different product categorisations; Article 6, Article 8 or Article 9. The main differentiator with SDR is that it is a labelling regime, not a disclosure regime, the FCA has said. If products do not meet the qualifying criteria under the FCA's proposals, they will not be able to use any of the regulator's sustainable investment labels. These labels are: sustainable focus, sustainab...