A worthwhile expense? A look at the impact of SDR on the bottom line

Although the regulator estimates that two thirds of existing funds using sustainable terminology will not end up using the new labels - tilting their current offering away from the sector - the total cost of implementation for the industry amounts to an estimated £146.7m - not to mention the annual ongoing costs totalling just shy of £27m. But regulating to address the market failures associated with sustainable investing was always going to be costly. A lack of standardised product information alongside asymmetric information between product providers and consumers will warrant large on...