MFA submitted a comment letter to the Financial Conduct Authority’s (FCA) consultation paper on extending the SDR regime to Portfolio Management.
The comment letter makes the following points:
- MFA welcomes the consultation on the extension of the Sustainability Disclosure Requirements and investment labels regime to portfolio management, as part of an overall framework that helps to facilitate and streamline the flow of robust and useful information between corporates, consumers, investors and capital markets.
- MFA believes it is appropriate for the labelling regime to apply on an opt-in basis for firms offering portfolio management services to professional investors.
- MFA believes frequent coordination by the FCA with counterparts, in the EU and US, is necessary to ensure implementation timelines are aligned and configured appropriately
- Given the diverse nature of the alternative asset management industry – encompassing a wide array of entities, each with unique business models, investment strategies and risk profiles – it is vital that the SDR regime accommodates this diversity and provides sufficient flexibility
