Funds Balk at UK Plan Set to Hit $70 Billion Impact Market

  • Industry says ESG rules may penalize funds in public markets
  • British watchdog wants new fund labels to stem greenwashing

Photographer: Bloomberg

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Impact funds in the UK face an uncertain regulatory future.

A plan by Britain’s financial watchdog to impose a labeling system on funds claiming to pursue environmental, social and governance investing strategies is on track to meaningfully reduce the size of the country’s $70 billion impact fund market, according to senior industry representatives.