The Financial Conduct Authority (the “FCA”) has extended the deadline for asset managers to comply with its new sustainability-related naming and marketing rules to 2 April 2025. These rules, part of the Sustainable Disclosure Regime (“SDR”) introduced in November 2023, specify that sustainability-related terms can only be used in financial products names and marketing if the product carries an approved label (i.e. either: sustainability focus, sustainability improvers, sustainability impact, and sustainability mixed goals). If no label is used, while the product name must reflect its characteristics, it cannot include terms such as “sustainable” or “impact.”
Firms are required to take steps to comply with these naming and marketing rules by 2 December 2024. However, the FCA is offering temporary flexibility until 5pm on 2 April 2025 for firms facing exceptional circumstances. This flexibility applies if the firm:
This extension gives firms more time to adjust to the new rules, following concerns raised about the complex approval process and vague feedback from the FCA.
The Zeidler ESG Legal Advisory Team of global sustainable finance and ESG experts are here to assist with any questions or support you may need.
