 |
| Source |
The UK's Financial Conduct Authority is proposing guidance for firms making sustainability claims in their promotional material, to avoid exaggerated and misleading messages. This includes situations where non-FCA authorised firms are getting promotions approved by FCA-authorised firms. The guidance will be finalised in Q1 2024, to take effect with the anti-greenwashing rule on 31 May 2024.
References to 'sustainability' must be:
- Correct and capable of substantiation;
- Clear and presented so as to be understood;
- Complete and not omit/hide key information;
- Take into account the full lifecycle of the product;
- Fair and meaningful in relation to any comparisons made.
The Anti-greenwashing rule provides:
ESG 4.3.1 R (1) This rule applies to a firm (whether it is undertaking sustainability in-scope business or not) which:
(a) communicates with a client in the United Kingdom in relation to a product or service; or
(b) communicates a financial promotion to, or approves a financial promotion for communication to, a person in the United Kingdom.
(2) A firm must ensure that any reference to the sustainability characteristics of a product or service is:
(a) consistent with the sustainability characteristics of the product or service; and
(b) fair, clear and not misleading.
