The Financial Conduct Authority (FCA) has proposed relaxing some of its rules as part of the Sustainability Disclosure Requirements (SDR) for some passive funds, following industry feedback.
In its quarterly consultation paper (No 49), the regulator explained the existing rules require products using an SDR label to ‘select' assets with reference to a "robust, evidence-based standard that is an absolute measure of environmental and/or social sustainability". But following feedback from the industry, the FCA acknowledged that this requirement will be "challenging" to abide by for fund managers of index-tracking funds. This is because managers of such strategies do not select the assets per se. The watchdog said it now intends to clarify the policy's intention by proposi...
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