On 28 November 2023, the UK’s Financial Conduct Authority (FCA) unveiled its Policy Statement PS 23/16 (Policy Statement), which sets out the final rules for sustainability disclosure and investment labels (SDR Rules). The market has been anticipating this development since the FCA released its consultation paper on the draft SDR Rules in October 2022 (SDR Consultation). See our 1 March 2023 client alert “UK Labeling Rules for ‘Sustainable’ Investment Products Will Soon Be Finalised”.
Recognising the growing global market in ESG-oriented assets, now estimated to total $18.4 trillion, the FCA emphasises the critical need for a UK sustainable labelling, marketing and disclosure regime, similar to the European Union’s influential Sustainable Finance Disclosure Regulation (EU SFDR). The finalisation of the SDR Rules is a significant step towards that goal.
