This briefing sets out some of the key headline points from the consultation. Before we get into the detail, we would make 3 overview comments.
- First, the FCA is eager to ensure coherence with overlapping and complementary requirements in existing UK and international disclosure regimes. This will be of particular interest in relation to any similar disclosures required by UK fund managers operating cross-border in the EU under the EU Sustainable Finance Disclosure Regulation (SFDR) and Taxonomy Regulation. However, it appears that there will be an element of additional reporting for firms that fall within scope of both legislative frameworks.
- Secondly, in setting minimum standards that firms must comply with, and on a flexible basis, the FCA is leaving it open for investor clients to agree new contractual terms with firms for the provision of additional information, or in a more prescribed form. UK AIFMs will have to consider potential requests in this area in the context of their obligations to treat all investors fairly and that any preferential treatment given by an AIFM…
