A worthwhile expense? How SDR will impact the bottom line

This week, a collective groan from the purse strings of compliance teams was heard across the UK as the FCA released its proposals for sustainability-related disclosures. Although the regulator estimates that two thirds of existing funds using sustainable terminology will not end up using the new labels - tilting their current offering away from the sector - the total cost of implementation for the industry amounts to an estimated £146.7m - not to mention the annual ongoing costs totalling just shy of £27m. But regulating to address the market failures associated with sustainable inv...