The Financial Conduct Authority's (FCA) Sustainability Disclosure Requirements aim to ensure that ‘financial products that are marketed as sustainable should do as they claim and have the evidence to back it up’.
How do they do this?
What will you see?
Sustainability labels
When using the Quilter platform, assets that have a label will have the following;
- The label will be present underneath the asset name as text when selecting funds and exchange-traded investments (ETIs) in the investment selection screens. When accessing the asset screen (by clicking on the asset name), a labelled fund or ETI will have the label in the top-right corner of the screen.
- A consumer-facing disclosure will be available to view on the same page in the bottom-left of the screen within the list of documents. It will also be presented to you with other key documents when completing new business, switch, or top-up activities.
- The option to search for an investment label has also been added as a filter within the advanced search options when using the investment selection screens.
Assets with stated environmental, social and governance (ESG) characteristics
Assets with stated ESG characteristics that do not have a label will have a consumer-facing disclosure that explains what environmental, social, or governance characteristics the asset has and why they have not applied a label. This document will be made available within the same screens as the assets that have a label.
Overseas notice
Some products are based overseas and are not subject to the Sustainability Disclosure Requirements. This will be highlighted when selecting an overseas asset.
Remember that a sustainability label is not an indicator of future performance and should be considered alongside other information available for the asset, including the consumer-facing disclosure and Key Investor Information Document (KIID) or Key Information Document (KID).
Find out more
You can find more information about the Sustainability Disclosure Requirements on the FCA website.