The Treasury Sub-Committee on Financial Services Regulation has called into question the "suspiciously round figures" the FCA has used to predict the outcomes from its Sustainability Disclosure Requirements (SDR) fund labelling proposals and now plans to conduct its own work in this area.
The Sub-Committee, responsible for examining FCA proposals, wrote to the regulator last month requesting clarification on some elements of the SDR. A key question referred to how the FCA calculated "two-thirds" of funds would likely need to change their marketing because of the new rules. In its 9 January response, the FCA acknowledged that "uncertainties and assumptions" were present in the cost benefit analysis (CBA) associated with its proposals. The FCA letter read: "We do not yet know what proportion of funds will be adapted to meet the qualifying criteria, and what proportion...
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15 February 2024
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1 min read
