FCA says SDR will be a 'very different' regime to Europe's SFDR

Comes after long-awaited consultation paper was published this morning

Beth Brearley
clock • 2 min read

Despite obvious comparisons between the UK's Sustainability Disclosure Requirements (SDR) consultation paper and Europe's Sustainable Finance Disclosure Regulation (SFDR), the Financial Conduct Authority (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 - the first consultation paper for which was published earlier today (25 October) - 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 regulato...

To continue reading this article...

Join Professional Adviser

  • Unlimited access to real-time news, industry insights and market intelligence.
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters.
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection.
  • Members-only access to the editor’s weekly Friday commentary
  • 
 Be the first to hear about our events and awards programmes.

Join

 

Already a Professional Adviser member?

Login

More on Investment

SDR a struggle for 29% of advisers; just 1-in-3 firms giving ESG training

SDR a struggle for 29% of advisers; just 1-in-3 firms giving ESG training

Lack of understanding driving advisers’ fears around greenwashing

Hope William-Smith
clock 05 December 2022 • 1 min read
Prepare, don't predict: It pays to stay humble in fluctuating markets

Prepare, don't predict: It pays to stay humble in fluctuating markets

Diversification remains best antidote to market uncertainty

Justin Onuekwusi
clock 05 December 2022 • 3 min read
ESG rises in importance for clients amidst geopolitical crises

ESG rises in importance for clients amidst geopolitical crises

Clients initiating talk around severe weather patterns, security and energy

Sian Barnett Wike
clock 02 December 2022 • 2 min read