How to SDR
13.11.2024 – Articles
The FCA’s Sustainability Disclosure Requirements (SDR) were designed to tackle greenwashing in UK finance and elevate the transparency of sustainable investment products. The opt-in regulation applies to all FCA-authorised firms, extending to non-UK managers of UK funds.
The big picture
SDR anti-green washing rules rolled out in May 2024. After broad industry concerns, the FCA pushed back the naming and marketing portion of the rules until April 2025.
Amid this market trepidation, we zero in on key SDR sticking points for UK funds and the parts of SDR firms are still in the process of implementing.
Word to the wise: sidestepping fund naming issues
Unlike its EU counterpart SFDR, SDR is largely an opt-in regulation. Managers can choose whether to label their funds as sustainable under its labelling framework or not.