As Cop26 has come to a close, the conference highlighted that financial services and markets have a role in helping the economy adapt to a more sustainable long-term future. In fact the Government announced at Cop26 that they intend the UK to be the worlds first net-zero financial centre. The FCA, along with other regulators, is tasked with helping address climate change and regulating sustainable investment. On the 3rd November, the FCA published a discussion paper DP21/4 Sustainability Disclosure Requirements (SDR) and investment labels.

So what does this mean for IFAs?

Section 1.11 of the discussion paper states: “This paper focuses on the elements of SDR relevant to firms involved in investment management and decision making processes. However, we recognise the important role that financial advisers play in providing consumers with sufficient information to assess which products meet their needs. We are also exploring how best to introduce specific sustainability-related requirements for these firms and individuals. Building on existing rules, a key aim will be to confirm that they should take sustainability matters into account in their investments advice and understand investors preferences on sustainability to ensure their advice is suitable. We will develop proposals on this in due course, working with the Government.”

Section 1.11 taken from the FCA DP21/4 Sustainability Disclosure Requirements (SDR) discussion paper, click here to download the full paper.

How can Pennine Wealth Solutions (PWS) help IFAs?

In 2016 PWS launched the Positive Pennine portfolios, which were designed using a wide variety of investments that make a social or environmental difference whilst avoiding certain areas such as fossil fuels, tropical deforestation and mining, to name but a few.

Over the last five years, PWS has worked with Financial Advisers to educate on the importance of sustainable and responsible investing. Time is taken to explain the terminology used in this area, such as ethical, impact and ESG. Advisers are provided with detailed information on what research was used to construct the Positive Pennine portfolios, how the portfolios are continually reviewed, and their performance. To demonstrate this, we have produced our Spectrum of capital document that can be viewed here .

Additional information – Alongside the discussion paper, the FCA also published “A Strategy for positive change: our ESG priorities.”

If you would like to know more about the range of Positive Pennine portfolios or the funds within the portfolios, don’t hesitate to get in touch with Sean Fisher, who will be happy to provide more information.

Call 0800 161 5052 or email  or visit our website

Positive Pennine is a trading style of Pennine Wealth Solutions LLP, part of the Socium group, which is authorised and regulated by the Financial Conduct Authority and is for professional investors only.  These investments are only accessed via accredited Financial Advisers.

Investors should remember that the value of investments and income from them can go down as well as up. Investors may not recover what they invest. Past performance is no guarantee of future results. Any mention of specific securities should not be interpreted as a solicitation to buy or sell specific securities.