MPs have called for the Financial Conduct Authority (FCA) to "spell out" whether retail investors will have to bear the costs of moving from greenwashed funds into products approved by the regulator as sustainable.
The Treasury Committee chastised the FCA's Sustainability Disclosure Requirements (SDR) proposals, calling for further work to be conducted on the "lop-sided" draft reforms. In a letter to the FCA's chief executive Nikhil Rathi today (9 March) the Treasury Sub-Committee on Financial Services Regulations criticised three main areas of the draft. The letter says a more detailed analysis of the costs to consumers of switching out of inappropriate products is "clearly necessary". It also raises concerns over the FCA's lack of enforcement plans against firms making ‘misleading claims' on t...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
