While investors are debating the importance of including sustainability factors within their portfolio analysis, advisers do not want to cause greater confusion for clients, leading them to believe they are investing in things that they are not.
As a result, the Financial Conduct Authority intends to publish its final requirements for sustainability disclosure and investment labels by the end of June 2023.
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This will provide greater consistency and a framework that advisers can use in conjunction with a valid psychometric questionnaire capturing client’s sustainability preferences.
Louis Williams is head of psychology and behavioural insights at Dynamic Planner
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