Read the Dear chair letter (PDF)
We have therefore developed a set of guiding principles, informed by broad stakeholder liaison and consumer research, to help firms apply our existing rules. The guiding principles are there to ensure that any ESG-related claims are clear and not misleading, both at the time of application and on an ongoing basis, so that consumers can make informed choices.
We will continue to scrutinise and challenge firms on their fund strategies and disclosures and to ensure that documentation submitted to us for authorisation meets our regulatory requirements.
The guiding principles are relevant where an FCA authorised investment fund pursues a responsible or sustainable investment strategy and claims to pursue sustainability characteristics, themes or outcomes. These principles are targeted at funds that make specific ESG-related claims, not those that integrate ESG considerations into mainstream investment processes.
The guiding principles complement our recent proposals to implement climate-related disclosure rules for asset managers, life insurers and FCA-regulated pension schemes.

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