FCA unveils final SDR rules including fourth 'Mixed Goals' label for 'blended strategies'
Following feedback, the FCA has also removed the word 'sustainable' from the labels and replaced it with 'sustainability', to reflect how some funds are 'on a journey to becoming sustainable'.
The new label will bring the total number to four and will address issues arising in the consultation process about multi-asset and blended strategies, which did not fit into the previous three categories.
SDR has consumer at its heart but adviser role is now key
Following feedback, the FCA has also removed the word «sustainable» from the labels and replaced it with «sustainability», to reflect how some assets are «on a journey to becoming sustainable».
As a result, the updated labels will be called: Sustainability Impact; Sustainability Focus; Sustainability Improvers; and Sustainability Mixed Goals.
Previously, the labels were proposed as Sustainable Focus, Sustainable Improvers and Sustainable Impact.
The regulator also confirmed it will introduce a 70% threshold across all labels, which will require firms to have at least 70% of the gross value of the product's assets invested in line with its sustainability objective.
Alongside the four labels, the FCA will introduce anti-greenwashing and naming and marketing rules. The former will be open for consultation until 26 January 2024 and will come into force at the end of May 2024, requiring firms to make fair, clear and non-misleading claims on the sustainability profile of their products and services.
The latter specifies that any product with sustainability-related terms in their names must be reflected in their sustainability characteristics, which should also be marketed accordingly and in line with the anti-greenwashing rule.
Its labelling rules will follow the
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