As regulation of sustainable and responsible investment advice looks more likely, we’re taking advisers on a deep-dive into the world of responsible investing – with a five-part webinar series explaining what the different disciplines involve and how to build a practical responsible investment proposition.
Despite Brexit-related delay, regulation requiring UK advisers to disclose their policy on responsible investment, and to conduct suitable due diligence, is still on the table.
The EU’s MiFID II sustainable finance disclosure regulation (SFDR), which covers both advisers and product manufacturers, was scheduled to come into force in March. This would have required advice firms to disclose to what extent sustainability criteria is included in their advice, explain to clients what, if any, sustainable investment solutions they offer, and conduct due diligence on the suitability of those investments.
Brexit means the rules will, for now, only apply to UK adviser firms that conduct business on a cross-border basis with the EU. But with the FCA currently in the process of building a regulatory framework to help create what it calls “an understandable, comparable and transparent market for sustainable finance products”, UK rules to cover advice in this area still looks highly likely.