The Financial Conduct Authority has announced an extension to the deadline for firms to comply with rules to tackle greenwashing.

The move has been made to give companies more time to comply with marketing rules under the FCA’s Sustainability Disclosure Requirements (SDR), which were published last year.

Under the change firms still have to submit applications to comply with the rules by 1 October but are being offered “limited temporary flexibility” until 5pm on 2 April, 2025 to adhere to naming and marketing requirements.

“Through engagement with industry and their representative trade bodies, it has become clear it has taken longer than expected for some firms to make the required changes,” said the FDA about the measures aimed at combating firms’ vague or false claims about their environmental credentials.

This is particularly for firms wishing to use investment label as well as to change the name of products or where they “require more time to meet the higher standards and prepare the disclosures needed for our approval”.

“Given the importance of getting SDR right for investors, we are seeking to take a pragmatic and outcomes-based approach to provide further support to those firms which may need additional time to operationalise any changes required,” the FCA said.

It added: “The SDR is a new regime that raises the bar. We have provided support to firms to help them meet these new higher standards.

“In recent weeks, we have been encouraged to see good progress made by firms to comply with the rules, and a strong pipeline of fund applications from firms wishing to use the labels.”

The Investment Association is “pleased that the FCA has listened to industry and granted investment management firms additional time to comply with the SDR investment labelling rules,” said its chief executive Chris Cummings.

He added; “Our industry has been working hard and at pace to implement the SDR requirements, which will raise standards and improve confidence for investors in the market for sustainable investments.

“We will continue to work constructively with the FCA and support our members to meet these deadlines, noting the more limited extension for firms complying with the 'naming and marketing' rules.”

---