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...
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