The UK’s financial watchdog has pushed back its plans for extending its Sustainability Disclosure Requirements (SDR) and investment labels regime to suppliers of portfolio management services. The Financial Conduct Authority (FCA) conducted a consultation exercise in Q2 2024 to refine its proposals for applying a “broadly similar approach” to labelling for portfolio managers as has been adopted for fund managers. However, it no longer intends to publish finalised plans in a policy statement in Q2 2025, to ensure the extension “delivers good outcomes for consumers, is practical for firms and supports growth” of the sector. “We will continue to reflect on the feedback and provide further information in due course,” the FCA said. Portfolio management covers the management of investments via model or customised portfolios, as well as ongoing management of private market investments, primarily to wealth management clients. Firms offering portfolio management services to institutional investors can opt in to the regime. Since July 2024, fund managers have been able to apply to use one of four ‘green’ SDR investment labels – Sustainability Focus, Sustainability Improvers (focused on ‘transition’ assets), Sustainability Impact, and Sustainability Mixed Goals. The labels were introduced in tandem with an anti-greenwashing rule as well as guidance on the naming and marketing of non-labelled funds. In September, the FCA extended until April 2025 the deadline to comply with the naming and marketing rules.
