On Apr. 23, 2024, UK FCA published its Finalized Guidance(FG) 24/3, Finalized non-Handbook guidance on the anti-greenwashing rule, which includes feedback statement.
FCA received 69 responses to draft guidance from a broad range of stakeholders who overall broadly supported the guidance and the practical examples it contains.
Supported aim to minimize greenwashing, welcomed anti-greenwash rule, guidance.
Some disagreed with certain aspects of guidance, such as implementation date, but most comments were calls for more examples, clarification of scope of the rule.
FCA has clarified scope of rule in the finalized guidance, added 2 additional examples, and more examples on good practice to illustrate how guidance principles apply.
And sought to provide more clarity on use of images in sustainability-related claims.
As the anti-greenwashing rule will come into force on May 31, 2024, FCA is bringing the guidance into force at the same time to give clarity on expectations on new rule.
On Nov. 28, UK FCA consulted on guidance on anti-greenwashing rule.
FCA issued consultation on new guidance that sets out its expectations for any FCA authorized firm that makes claims about the sustainability of a product or service.
FCA introduced an anti-greenwashing rule to FCA HB (ESG 4.3.1), in force May 31, 2024, as part of package to improve trust, transparency of sustainable investments.
The new anti-greenwashing rule covers all FCA-authorized firms who will have to ensure that any sustainability-related claims are fair, clear and not misleading.
Guidance Consultation
The proposed guidance is designed to help firms better understand the FCA's expectations under the rule (ESG 4.3.1) and other existing, associated requirements.
Proposes that sustainability references should be: correct and capable of being substantiated; clear and presented in a way that can be understood; and complete.
That is, should not omit or hide important information, should consider full lifecycle of product or service; be fair and meaningful re comparisons to other products/services.
FCA expects firms' sustainability-related claims about their products and services should live up to what they claim, and firms should have evidence to back them up.
Effectiveness
The closing date for submission of responses to guidance consultation is Jan. 26, 2024.
Will consider comments, then issue final guidance to come in force on May 31, 2024.
Jan. 29, 2024 Consultation Closed
On Jan. 29, 2024, UK FCA updated page for anti-greenwashing guidance consultation.
Confirmed consultation closed on Jan. 26, will issue finalized guidance in early 2024.
Apr. 23, 2024 Finalized Guidance Issued
On Apr. 23, 2024, UK FCA published its Finalized Guidance(FG) 24/3, Finalized non-Handbook guidance on the anti-greenwashing rule, which includes feedback statement.
FCA received 69 responses to draft guidance from a broad range of stakeholders who overall broadly supported the guidance and the practical examples it contains.
Supported aim to minimize greenwashing, welcomed anti-greenwash rule, guidance.
Some disagreed with certain aspects of guidance, such as implementation date, but most comments were calls for more examples, clarification of scope of the rule.
FCA has clarified scope of rule in the finalized guidance, added 2 additional examples, and more examples on good practice to illustrate how guidance principles apply.
And sought to provide more clarity on use of images in sustainability-related claims.
As the anti-greenwashing rule will come into force on May 31, 2024, FCA is bringing the guidance into force at the same time to give clarity on expectations on new rule.
