FCA’s SDR package expected to face implementation challenges, report finds

Firms implementing the Sustainability Disclosure Requirements of the UK financial regulator will face challenges including product governance challenges and tight timelines for compliance with the ‘anti-greenwashing’ rule.

A report from PwC and the UK Sustainable Investment and Finance Association also identified fund labelling interoperability across different jurisdictions and uncertainty over the qualifying criteria for the labelling categories as key challenges.

Publication of the report follows the publication by the Financial Conduct Authority in November of its final rules on UK SDR and investment labels.

The report finds that the implications of the SDR package will be felt across the breadth of asset management organisations and other institutions, such as financial advisers and investment platforms.

David Croker, a partner at PwC UK, said: “The FCA’s SDR package represents a significant development in the UK’s sustainable finance regulatory framework, bringing with it wide-ranging impacts on the asset management sector.

“As asset managers continue to grapple with evolving sustainable finance regulation globally, it will be important for them to take a strategic view of the SDR package to help manage challenges around interoperability.”

FCA is keeping close eye on systemic risk following private equity fears

HAVE YOU READ?

THOUGHT LEADERSHIP

Innovative US companies are providing some of the solutions to the climate crisis and transition to a more sustainable economy. We see potential opportunities in areas including renewable energy and…
FIND OUT MORE
This white paper outlines key challenges impeding the growth of private markets and explores how technological innovation can provide solutions to unlock access to private market funds for a growing…
DOWNLOAD NOW

IRELAND SPOTLIGHT

Visit our dedicated Ireland channel for all the latest news and analysis on the country's investment industry.
READ MORE

PRIVATE MARKETS FUND ADMIN REPORT

Private_Markets_Fund_Admin_Report

LATEST PODCAST