Legal & Regulatory News

FCA releases Dear CEO Letter sent to alternative investment portfolio managers regarding main supervisory priorities, including the integrity of ESG labels

On 9 August 2022, the UK Financial Conduct Authority (FCA) released a copy of a letter (the Dear CEO Letter) sent to all CEOs in its 'Alternatives' portfolio (i.e. FCA authorised firms that predominantly manage alternative investment vehicles (i.e., hedge funds or private equity funds) or manage and advise alternatives assets directly) reaffirming their supervisory priorities for the sector.

Within the Dear CEO Letter, the FCA outlined its updated supervisory strategy and priorities, including specific areas where it believes improvements are needed. In particular, the FCA highlighted that its supervisory priorities include ensuring that ESG labelling of investments in the market is not misleading and that ESG disclosures in relation to such investments are clear.

Click here to access the Dear CEO Letter