U.K. Financial Regulator Slams ‘Poorly Drafted’ ESG Fund Filings
- Some funds’ green credentials ‘do not bear scrutiny,’ FCA says
- Unproven claims could undermine trust in ESG investment
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Money managers are issuing “poorly drafted” pitches for investment funds meant to combat climate change, with claims that “do not bear scrutiny,” said Britain’s financial-markets regulator as it ordered companies to improve disclosures.
The Financial Conduct Authority said in one case, a fund declared a sustainable strategy while containing two “high-carbon emissions” energy companies among its top 10 holdings.