FCA anti-greenwashing rule comes into force

Ahead of FG24/3, the FCA had issued proposed guidance GC23/3, with a response deadline of 26 January, giving stakeholders an opportunity to comment on the draft approach before it was finalised. The regulator originally proposed that the anti-greenwashing rule would take effect immediately on publication, but subsequently granted firms an additional six months to ensure compliance, extending the implementation period to 31 May.

Position within the SDR and labelling framework

The anti-greenwashing rule forms part of the FCA’s wider Sustainability Disclosure Requirements regime, which is being phased in alongside a new labelling and naming architecture for sustainable investments. Under this framework, UK-based fund managers will be able to start using FCA investment labels from 31 July, creating a standardised set of sustainability designations to sit alongside the anti-greenwashing baseline.

The regime also introduces dedicated naming and marketing rules for UK-based fund managers, which will come into effect from 2 December and will govern how sustainability-related terms can be used in product names and promotional materials. Together, the labels, naming rules and anti-greenwashing requirement form a linked set of tools aimed at improving the alignment between stated sustainability objectives, portfolio construction and external communications.

Supervisory coordination and consumer context

The FCA states that it works closely with the Advertising Standards Authority and the Competition and Markets Authority to tackle greenwashing, showing coordinated oversight across financial regulation, advertising standards and competition law. This collaboration is intended to create a more consistent enforcement environment for sustainability claims, whether they appear in regulated financial promotions or in broader marketing and corporate communications. That level of stated interest provides the backdrop for the anti-greenwashing rule, with the FCA positioning accurate sustainability claims as a prerequisite for informed consumer choice.