UNITED KINGDOM: AIC urges FCA to avoid misleading ESG claims

Wednesday January 12 2022

The Association of Investment Companies (AIC) has proposed that demanding standards should be set for funds that call themselves “sustainable” or make ESG claims.

In its response to the FCA’s discussion paper ‘Sustainability disclosure requirements and investment labels’ (DP21/4), the AIC also argues that product labels should distinguish between products that focus on environmental sustainability and those targeting positive social change, though it would be possible for a single fund to carry both labels if it met the standards.

Finally, the AIC recommends that the same standards are applied to all retail investment products that fall under the PRIIPs and UCITS regimes, including investment companies.

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