Funds’ green boasts could be misleading, warns City regulator
The Financial Conduct Authority ruled that fund managers were failing to meet its expectations on stamping out greenwashing
AP PHOTO/MICHAEL PROBST
Funds that badge themselves as green but invest in oil and gas companies on the grounds they are “on a path to net zero emissions” may be misleading investors, the Financial Conduct Authority has ruled.
The regulator said in a new review into funds labelled as “responsible” or “ethical” or “sustainable” that fund managers were failing to meet its expectations on stamping out greenwashing.
While most had tried to comply with its requirements, it found a number of failings at a sample of 12 authorised fund managers it inspected and called on the sector to do more in the design of their funds and the levels of disclosure they made to end investors.
It singled out funds that categorise themselves as green but back companies
