Reference Case Number: FOI11956
Freedom of Information: Right to know request:
- Number of funds contacted by the FCA regarding breaches of the SDR anti-greenwashing rule.
- Number of funds contacted by the FCA regarding breaches of the SDR naming and marketing rules.
- Number of fines or other actions taken against funds for breaches of SDR rules, and the average value of fines.
- Number of funds that have adopted a sustainability label under SDR.
- Name of funds that fall under each of the data requests above.
FCA response:
- The number of funds contacted by the FCA regarding breaches of the SDR anti-greenwashing rule is zero.
- The number of funds contacted by the FCA regarding breaches of the SDR naming and marketing rules is zero. We will note that the naming and marketing rules came into force on 2 December 2024. Also, we are offering limited temporary flexibility (until 2 April 2025) to the naming and marketing rules in exceptional circumstances. You can find out more here: https://landmark-phase.live/firms/climate-change-and-sustainable-finance/sustainability-disclosure-and-labelling-regime%3Cspan class="print-footnote">[1]).
We have interpreted this question as relating to actions taken as a result of investigations in which investigators have been formally appointed under any of the relevant subsections of section 168 of the Financial Services and Markets Act 2000. On that basis, we can confirm that no fines or other sanctions have been taken against funds for breaches of SDR rules to date.
However, you should be aware that the FCA is not solely limited to enforcement action, including financial penalties. The FCA can and does take a range of actions beyond enforcement investigations. These may include agreeing to voluntary, or imposing own initiative, requirements, and requiring firms which have communicated or approved a potentially misleading advert to withdraw it or change it so that it complies with our requirements.
- As of 16/01/25, we have been notified by 43 funds of their intention to use a sustainability label under SDR rules. Please note that this includes both authorised and unauthorised funds. In addition, we have approved pre-contractual disclosures for a further 57 authorised funds. We would also note that, generally speaking, there will be a lag time between the FCA approving disclosures and the fund notifying us of their intent to use a label.
- We can confirm that we hold the information you have requested, but we are prohibited from disclosing it to you as it constitutes ‘confidential information’ for the purposes of section 348 of the Financial Services and Markets Act 2000 (FSMA), which the FCA has received in the discharge of its public functions. We are therefore exempted from the duty to disclose this information under section 44 of FOIA. For more information on why this exemption applies, please see Annex A below.