Legal & Regulatory News

UK's Financial Conduct Authority publishes discussion paper on sustainability disclosure requirements

On 3 November 2021, the UK Financial Conduct Authority (FCA) published a discussion paper (DP21/4) (the Discussion Paper) seeking initial views from all parts of the financial sector on proposed sustainability disclosure requirements (SDR) for asset managers and certain FCA-regulated asset owners, and the products they offer. The SDR are intended to build trust in the market, improve transparency in the interest of consumers, and meet the information needs of certain institutional investors.

The Discussion Paper outlines a three-tiered approach which the FCA is considering, consisting of product labels, consumer-facing disclosures, and detailed disclosures aimed at institutional investors. Both layers of disclosure are intended to build on the FCA's proposed TCFD-aligned disclosure requirements.

The FCA intends to consult in Q2 2022 on the proposed rules to implement SDR within the FCA Handbook. The Discussion Paper is intended to inform the FCA's work to develop these proposals.

The deadline for responses to the Discussion Paper is 7 January 2022.

Click here to access the Discussion Paper.