Scope
FCA-authorised firms (anti-greenwashing rule: all); UK fund managers (labels/naming)
UK · rule
FCA Sustainability Disclosure Requirements & investment labels (SDR)
FCA PS23/16 — ESG Sourcebook
In forceApplies 2024-05-31
Penalties
FCA supervision; DMCC Act 2024 gives CMA parallel direct-fining power up to 10% of global turnover for consumer claims
Last verified
2026-08-22
In plain language
What this law does
Fund-labelling regime with four labels (Focus, Improvers, Impact, Mixed Goals) each requiring ≥70% of assets meeting the sustainability objective, plus naming/marketing gates for ESG terms and product/entity-level disclosures.
Core obligations
Sustainability claims fair, clear, not misleading; ≥70% asset alignment for labels; consumer-facing and ongoing product disclosures; entity-level reports
Dictionary
Terms defined in this law
- Four investment labelsFCA Sustainability Disclosure Requirements (PS23/16)
- 70% thresholdFCA Sustainability Disclosure Requirements (PS23/16)
- Sustainability in-focus / improver / impact" terminologyFCA Sustainability Disclosure Requirements (PS23/16)
- Sustainability characteristics" naming rulesFCA Sustainability Disclosure Requirements (PS23/16)
- Anti-greenwashing ruleFCA Sustainability Disclosure Requirements (PS23/16)
- Product-level metricsFCA Sustainability Disclosure Requirements (PS23/16)
Claims