The Financial Conduct Authority is publishing guidance to help financial services companies address forthcoming anti-greenwashing rules. In force from 31st May, the new rules are designed to protect consumers by ensuring sustainable products and services they are sold are accurately described.

The FCA is also consulting on extending to portfolio managers the requirements on how sustainable investments are labelled and explained. These are firms that manage a group of investments for consumers, which can either be offered as standardised products or tailored services.

The proposed labelling and Sustainability Disclosure Requirements for portfolio managers largely mirror those introduced for asset managers in November 2023. They include product labels to help consumers understand what their money is being used for; and naming and marketing requirements so products can only be described as having positive outcomes on the environment and/or society when those claims can be backed up.

Sacha Sadan, director of environmental, social and governance, FCA, said: “Confirming the new anti-greenwashing guidance and our proposals to extend the Sustainability Disclosure Requirements and investment labels regime are important milestones that maintain the UK’s place at the forefront of sustainable investment. Our good and poor practice anti-greenwashing examples will help firms market their products in the right way. We continue to work closely with the ASA and CMA to address greenwashing.

“Consumers care about investing in products that have a positive impact on the planet and people. That’s why we want to boost the integrity of the market and ensure people can make informed decisions about how to invest their money.”

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