Authorised ESG & Sustainable Investment Funds – Multi-firm review
2-3pm GMT, 5 December 2023
On 5 December 2023, FBC members heard from the FCA’s Christopher Davis, Head of Asset Management & Funds Market Interventions, and Senior Associate, Fiona Law, to discuss the findings of their multi-firm review of authorised fund managers (AFMs) and ESG & sustainable investment funds.
Hosted by FBC senior adviser, Brandon Horwitz, the discussion and member Q&A covered the good practices and areas for improvement uncovered in the review including:
- how the Guiding Principles introduced in 2021 fit with the final Sustainability Disclosure Requirements (SDR) announced in 2023
- lack of specific ESG or sustainability objectives in many funds, with firms often including ESG and sustainability policies in investment strategies instead
- the need for better disclosure practices to provide investors with clear and relevant information for informed decision-making
- methodologies for measuring impact
- key governance takeaways including the responsibilities of Fund Board Directors
Following a discussion with the FCA a couple of days after the publication of the review, FBC has also produced a Memo outlining the key messages for fund board directors to help FBC corporate members identify their key responsibilities highlighted in the review.
Senior Associate within the Asset Management and Funds Market Interventions Department at the FCA
Fiona is a Senior Associate within the Asset Management and Funds Market Interventions Department at the FCA, having been a member of the department for five years. Fiona supervises small asset management and alternatives firms on a day-to-day basis and has developed more specific experience in relation to principal and appointed representative business models. Fiona first joined the FCA in 2016 as a supervisor in the Retail Investments Department. Fiona recently led the FCA’s multi-firm review into the implementation of the ESG Guiding Principles by authorised fund managers. The review considered whether firms are complying with existing requirements relating to the design, delivery and disclosure of ESG and sustainable funds. Fiona holds the CISI Investment Management Certificate and is currently studying for the CBI Green and Sustainable Finance Certificate. Prior to joining the FCA, Fiona was an adjudicator at the Financial Ombudsman Service specialising in general investment and interest rate hedging cases. This followed earlier roles in the legal sector in commercial litigation and professional regulation.