FCA Consultation Paper on Sustainable Disclosure Requirements and investment labels (CP22/20)

Aviva welcomes today’s publication of the FCA Consultation Paper (CP) on Sustainable Disclosure Requirements (SDR) and investment labels (CP22/20).

This is an important milestone towards a robust regulatory framework for sustainable investing for UK consumers, financial advisers, and product providers. It represents a key component of the Government’s Roadmap to Sustainable Investing (published Oct 21).

The focus of this CP is mainly on asset managers however it provides very relevant context for other stakeholders. The FCA notes it is exploring how to introduce rules for financial advisers, confirming the position that they should take sustainability matters into account in their investment advice, and understand investors’ preferences on sustainability to ensure their advice is suitable. The FCA intends to follow with a separate consultation in due course.

“Financial advisers are already expected to take account of customers’ ESG preferences when giving investment advice, and this paper provides direction on the proposed distinction between funds with sustainable characteristics and those with wider ESG integration features. The paper is a must read for financial advisers and will help them gear up for a future financial adviser focussed consultation, which the FCA intends to issue in due course.” James Dalby, Investment Propositions, Aviva Wealth.

Whilst there are still points of detail that will evolve through the consultation phase, we thank the FCA for the level of engagement offered in their process to date, and we look forward to that continuing.

Sustainability forms a key part our own strategy. We launched the Aviva Sustainability Ambition (ASA) in March 2021, were the first major insurer to target net zero carbon emissions by 2040, and more recently, we have introduced an ESG Profiler Tool on our Adviser Platform.