Europe's watchdogs are calling on the European Commission to scrap the Article 8 and 9 fund categories. Instead, they want "simple" product categories, including 'sustainable' and 'transition'. Oddly, not seen this get much coverage today, despite the fact it has huge implications for Europe's fund industry... https://lnkd.in/e2PG4Jgk
Natasha S.
3w
Gosh that is BIG news!
Co-Director Financial Inclusion Centre; Chair Registry Trust; Director, AfFI; Irish Financial Services and Pensions Ombudsman board; UKRN Expert Panel. Ex Z2K Chair, CCNI Dep Chair, FCA/FSA, ShareAction boards, Which?
3wIt would be a huge mistake if the EU follows the FCA's model for sustainable investing labels. FCA's regime conflates different objectives - environmental and social. Moreover, the classifications are too vague and are open to abuse particularly the 'Improver' label. Let's have one clear grading/ rating system for environmental and one for social based on objective data. FCA's system is voluntary and to all intents and purposes a self regulatory regime. It will not be effective at preventing green or impact washing and let's financial firms that continue to harm the environment and people to escape scrutiny. Or a binary system where only funds that can verify they meet a threshold for qualifying assets are allowed to use an 'E' or 'S' badge. Other funds that are not able to verify that they pass the threshold should not be allowed to use a label until they can prove the pass the eligibility threshold. FCA regime was designed to meet the marketing demands of the industry not designed to expose green and impact washing. The whole system is in a mess because it was driven by industry lobbyists. #esg #greenwashing #impactwashing