The Financial Conduct Authority has launched a new working group for financial advisers focused on building capability in sustainable finance across the advice sector.
The City watchdog said the group will support industry in advising consumers on products making claims about sustainability.
It follows a raft of new measures by the FCA, published in November 2023, to curb greenwashing and label sustainable funds.
The working group will be led by Daniel Godfrey as chair and Julia Dreblow as vice-chair. The Personal Investment Management & Financial Advice Association (PIMFA) will provide the secretariat. Godfrey will appoint the group’s membership from across the advice sector, including both small and larger industry participants.
The FCA will sit as an active observer of the group and has asked that it be ready to report on how the advice sector can be supported in delivering good practice in the second half of 2024.
The working group will also engage with stakeholders outside of the group throughout its work to ensure a “balanced representation of views”, including those of consumers, the FCA said.
Sacha Sadan, director of environmental, social and governance at the FCA, said: “We are delighted that Daniel, Julia and PIMFA have agreed to lead the working group. This important project will benefit from their combined skills and expertise.
“We believe in the value of solutions being led and designed by industry and look forward to seeing the group focus on practical ideas to support the advice sector in building its capabilities on sustainable finance.”
Daniel Godfrey added: “We intend to move quickly to appoint a set of members to the group that represents all stakeholders. The project will additionally seek the widest possible range of views.
“It is vital that advisers are empowered to fully comprehend and integrate sustainability risks as material financial considerations. Collectively they can help to steer the whole investment industry towards an alignment of investment strategies with the long-term needs and values of clients.”
