'Layers of complexity': Will green fund labels do the job?

Introduction of three mutually exclusive fund labels

clock • 4 min read

Laith Khalaf shares his views on the regulator's moves to prevent greenwashing through its fund labelling regime

The Financial Conduct Authority (FCA) is raising the bar for sustainable funds after widespread concern that the ESG bandwagon was getting inexplicably overcrowded. In other words, the suspicion that some fund groups were, to put it politely, taking the pee out of ESG. The regulator is now consulting on a new green labelling regime, with additional disclosures to be required of fund firms to prevent greenwashing becoming an embedded feature of the UK's investment industry. The extent to which greenwashing is on the radar of everyday savers and investors is unclear. That said, the E...

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