AFME publishes response to FCA’s consultation paper on SDR and investment labels

Article summary

The Association for Financial Markets in Europe (AFME) has published its response to the Financial Conduct Authority’s (FCA) consultation paper on Sustainability Disclosure Requirements (SDR) and investment labels. The AFME welcomes the proposed SDR and investment labels and supports the focus on establishing credible, effective product labels for sustainable investments, but also considers the potential challenges arising from its implementation. These include the timing considerations and criteria for the proposed labels, the marketing and distribution of products with some sustainability characteristics but which do not meet the eligibility criteria for one of the proposed sustainable investment labels and the cross-border distribution of funds and the implications for double labelling of funds under the UK and EU frameworks.