SDR Labels: Are You Ready for the FCA’s Scrutiny?

With the FCA’s extension to application of the SDR naming and marketing rule expiring today, asset managers using sustainability labels should be prepared for regulatory engagement in a new and untested area.

The Asset Management Supervisory Strategy letter confirmed that the FCA will be actively reviewing how firms are implementing SDR in practice, moving beyond the application of labels to assess the governance, oversight, and operational controls supporting them. Firms have not yet been tested on their end-to-end compliance, making this a critical moment to ensure their frameworks can stand up to regulatory challenge.

Our latest SDR compliance gap analysis provides a comprehensive assessment of what firms need in place to ensure compliance - from investment frameworks to governance structures, control mechanisms, and board oversight. SDR is more than just disclosure; it’s about demonstrating credible, well-documented sustainability claims that withstand external challenge.

Firms that fail to meet expectations risk regulatory intervention, reputational damage, and even enforcement action. Don’t leave it to chance. Download the gap analysis now and make sure your firm is ready.

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