After consulting with firms and trade bodies, the regulator stated today (9 September) that it has taken “longer than expected” for some firms to implement the necessary changes under the Sustainability Disclosure Requirements (SDR) before the December deadline.
The regulator also noted a “strong pipeline of fund applications” from firms seeking to use one of the four SDR labels. However, the FCA informed Investment Week last week that it was only aware of six products applying for or notifying their intent to adopt the labels.
To date, only WHEB Asset Management and AEW have publicly confirmed being granted the Sustainability Impact label.
In contrast, investment trusts Premier Miton Global Renewables and Impact Healthcare REIT announced they would be removing sustainability-related terms from their names and/or investment objectives.
The FCA emphasized the importance of getting the SDR “right for investors” and is adopting a “pragmatic and outcomes-based approach” to offer additional support to firms seeking a label. It acknowledged that some firms may need “extra time to implement the required changes.”