Asset Management

FCA targets asset managers as ESG funds review kicks off

The UK regulator's multi-firm review could trigger enforcement action for those found to be greenwashing

The FCA has set out a series of guiding principles to help asset managers ensure that disclosures ‘accurately reflect the nature of a fund’s responsible or sustainable investment strategy'
The FCA has set out a series of guiding principles to help asset managers ensure that disclosures ‘accurately reflect the nature of a fund’s responsible or sustainable investment strategy' Photo: Chris Ratcliffe/Getty Images

The Financial Conduct Authority is probing how asset managers have implemented the regulator's ESG principles — a move that could eventually lead to fines or bans for those guilty of greenwashing.

The FCA has embarked on a so-called multi-firm review of funds marketed with ESG credentials, in an exercise expected to run into the first quarter of next year, according to a person familiar with the matter.

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