The anti-greenwashing Rule (AGR) of the Financial Conduct Authority (FCA), a financial regulatory body in the United Kingdom, came into force on Friday.
The rule makes it mandatory for financial services companies in the UK to ensure that all the sustainability-related claims made about their products and services are “fair, clear and not misleading” and applies to all firms authorised by the FCA.
FCA informed that those financial firms that fail to comply with the rules will face supervisory actions.
The AGR is designed to ensure that consumers are protected from misleading sustainability-related claims and will enable the end users to make informed decisions aligned with their sustainability preferences.
Sacha Sadan, FCA’s ESG Director said, “Consumers care about investing in products that have a positive impact on the planet and people. That’s why we want to boost the integrity of the market and ensure people can make informed decisions with their money.”
More components of FCA’s Sustainability Disclosure Requirements will come into force later this year.
