FCA to tackle investment greenwashing with techsprint
The Financial Conduct Authority (FCA) has launched a techsprint to identify a tool to tackle greenwashing in financial services.
The regulator said the number investment products marketed as ‘green’ or making unsubstituted sustainability claims is growing.
As such, the FCA and the Global Financial Innovation Network (GFIN) have launched a virtual techsprint, hosted on the FCA’s Digital Sandbox, to bring together international regulators, firms and innovators to address sustainable finance as a collective priority.
“Exaggerated, misleading or unsubstantiated claims about environmental social and governance credentials damage confidence in these products and the FCA wants to ensure that consumers and firms can trust that products have the sustainability characteristics they claim to have,” the regulator said.
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UK-based firms can apply to take part from 17 April 2023 and the application window will remain open for four weeks.
Firms that are successful in their application will proceed to on-boarding, which will take place 1-2 June.
The on-boarding process will provide firms with training on the Digital Sandbox and an in-depth overview of the techsprint process.
Read more: FCA outlines plans to combat greenwashing
The FCA is among 13 international regulators so far taking part in the GFIN’s first ever Greenwashing TechSprint.
The techsprint will launch on 5 June and run for three months, ending with a showcase day in September 2023.
The GFIN is a group of more than 80 international organisations committed to supporting financial innovation in the interest of consumers.
The FCA currently chairs the GFIN’s co-ordination group, which sets the overall direction, strategy and annual work programme.
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