November 29, 2023

FCA issues proposed guidance on anti-greenwashing rule

The UK Financial Conduct Authority has introduced an “anti-greenwashing” rule  to help ensure that sustainability-related claims made by authorized firms about their products and services are fair, clear and not misleading, and are consistent with the sustainability characteristics of the product or service.  On November 28, 2023, the FCA announced that it is consulting on general guidance regarding the anti-greenwashing rule.  According to the FCA, the guidance is intended to ensure that FCA-authorized firms understand the FCA’s expectations on making claims regarding sustainability that are fair, clear and not misleading, in an effort to improve consumer confidence and enhance the transparency, credibility and integrity of markets.  The FCA has also worked with the Competition and Markets Authority and the Advertising Standards Authority to ensure that the proposed guidance is consistent with their guidance and requirements.

The FCA welcomes comments regarding the proposed guidance and requires that all responses be submitted using this online response form by January 26, 2024.  After reviewing all responses to the consultation, subject to the comments received, the FCA intends to publish the finalized guidance in early 2024, to come into force on May 31, 2024.

FCA Publication | Guidance Consultation on Anti-Greenwashing Rule