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". 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". "We also expect clear and accurate ongoing disclosures to ...
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