The UK’s anti-greenwashing rule is on the horizon: Four steps for financial services firms to prepare

UK regulation targeting greenwashing is on the horizon and financial services firms need to be preparing for it now. Ensuring compliance will require a fundamental rethink of how firms define sustainability, integrate it into their business and communicate to investors, consumers and regulators. And beyond compliance, this reevaluation can create value for firms by helping to ensure transparency and build trust with clients and stakeholders.

The Financial Conduct Authority (FCA) is expected to introduce its first dedicated anti-greenwashing rule1 for all of its regulated firms in Q4 2023. The proposed rule clarifies that existing requirements around ‘fair, clear and not misleading’ communications apply to the sustainability-related claims firms make about their products.

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