As part of our commitment to providing clarity and transparency in sustainable investments, we would like to update you on the actions IBOSS has taken in response to the latest FCA rules regarding Sustainability Disclosure Requirements (SDR).
Anti-Greenwashing Rule
Following the FCA’s policy paper on Sustainability Disclosure Requirements (SDR) released on 28 November 2023, the introduction of the anti-greenwashing rule came into effect on 31 May 2024. This rule is designed to ensure that sustainability-related claims are:
- Fair, clear, and not misleading
- Correct and substantiated
- Presented in a way that is easily understood
- Free from jargon, broad generalisations, or misleading visuals
- Complete, with no important information omitted
- Fair and meaningful when compared to other products
At IBOSS, we have thoroughly reviewed all our materials to ensure full compliance with these guidelines. This includes ensuring that our marketing and product descriptions accurately reflect the sustainable nature of our offerings.
SDR Fund Labels
From 31 July 2024, UK-domiciled funds have been able to adopt one of four new sustainability labels:
- Sustainability Focus
- Sustainability Improvers
- Sustainability Impact
- Sustainability Mixed Goals
While the FCA’s intended deadline for the new naming and marketing rules is 2 December 2024, recent updates in the press indicate that this has been extended for asset managers until 2 April 2025, provided they apply for a label by 1 October 2024. We have already reached out to all our underlying fund managers to inquire about their intentions regarding SDR fund labels. We’ve received mixed responses so far, with some fund houses indicating they will take the full time allowed before providing specific information. However, we are pleased to report that several funds have confirmed their intent to secure an SDR label. We will update you as soon as these labels are officially assigned.
Updates for MPS Clients
We are still awaiting final guidance from the FCA regarding the rules for Discretionary Fund Managers (DFM) and Managed Portfolio Service providers (MPS). We will ensure that IBOSS continue to keep you informed of further developments.
Should you have any queries, please do not hesitate to contact us at enquiries@ibossam.com.
This communication is designed for professional financial advisers only and is not approved for direct marketing with individual clients. These investments are not suitable for everyone, and you should obtain expert advice from a professional financial adviser. Investments are intended to be held over a medium to long term timescale, taking into account the minimum period of time designated by the risk rating of the particular fund or portfolio, although this does not provide any guarantee that your objectives will be met. Please note that the content is based on the author’s opinion and is not intended as investment advice. It remains the responsibility of the financial adviser to verify the accuracy of the information and assess whether the discretionary fund management model portfolio is suitable and appropriate for their customer.
Past performance is not a reliable indicator of future performance. The value of investments and the income derived from them can fall as well as rise, and investors may get back less than they invested.
IBOSS Asset Management Limited is authorised and regulated by the Financial Conduct Authority. Financial Services Register Number 697866.
IBOSS Asset Management Limited is owned by Kingswood Holdings Limited, an AIM Listed company incorporated in Guernsey (registered number: 42316).
Registered Office is the same: 2 Sceptre House, Hornbeam Square North, Harrogate, HG2 8PB. Registered in England No: 6427223.