On 5 December 2023, FBC members heard from the FCA’s Christopher Davis, Head of Asset Management & Funds Market Interventions, and Senior Associate, Fiona Law, to discuss the findings of their multi-firm review of authorised fund managers (AFMs) and ESG & sustainable investment funds. 

Hosted by FBC senior adviser, Brandon Horwitz, the discussion and member Q&A covered the good practices and areas for improvement uncovered in the review including:

• how the Guiding Principles introduced in 2021 fit with the final Sustainability Disclosure Requirements (SDR) announced in 2023
• lack of specific ESG or sustainability objectives in many funds, with firms often including ESG and sustainability policies in investment strategies instead
• the need for better disclosure practices to provide investors with clear and relevant information for informed decision-making
• methodologies for measuring impact
• key governance takeaways including the responsibilities of Fund Board Directors 

Following a discussion with the FCA a couple of days after the publication of the review, FBC has also produced a Memo outlining the key messages for fund board directors to help FBC corporate members identify their key responsibilities highlighted in the review.