While the popularity of ESG investing shows no signs of slowing down, impending regulatory changes could spell trouble for over half of ESG funds currently in operation, Kate Gee and Alasdair Marshall write...
The Financial Conduct Authority (FCA) has made clear its intention to ‘clean up' the ESG fund sector from misleading funds which brand themselves as ‘ESG-friendly' but, in practice, do not adhere to ESG standards. In doing so, the FCA may open the door for claims from dissatisfied investors. ESG funds and the FCA's proposals Last year saw UK investment into ESG funds reach a record £91bn, up from £56bn just two years earlier. However, the sector has been plagued by ESG funds which benefit from the popularity, but do not uphold the standards, associated with the ESG label. The FCA is...
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