FCA joins GFIN’s Greenwashing TechSprint to address sustainability claims in financial services

FCA joins GFIN’s Greenwashing TechSprint to address sustainability claims in financial services

(IN BRIEF) The Global Financial Innovation Network (GFIN) is hosting its first-ever Greenwashing TechSprint, and the Financial Conduct Authority (FCA) is among the 13 international regulators participating. The TechSprint aims to develop a tool or solution to effectively tackle the risks of greenwashing in financial services, where exaggerated, misleading, or unsubstantiated claims about Environmental, Social, and Governance (ESG) credentials damage confidence in green investment products. The TechSprint will run for three months, from June 5 to September 2023, and will end with a showcase day. UK-based firms can apply to take part from April 17, 2023, and successful applicants will receive training on the Digital Sandbox and an in-depth overview of the TechSprint process during the onboarding process on June 1-2.

(PRESS RELEASE) LONDON, 11-Apr-2023 — /EuropaWire/ —  The Financial Conduct Authority (FCA), the conduct regulator for around 50,000 financial services firms and financial markets in the UK and the prudential supervisor for 48,000 firms, is proud to be among 13 international regulators participating in GFIN’s (Global Financial Innovation Network) first ever Greenwashing TechSprint. We invite all UK-based firms who are interested in participating to apply from April 17, 2023.

GFIN is a group of more than 80 international organizations committed to supporting financial innovation for the benefit of consumers. We are currently chairing the GFIN’s Co-ordination Group, which sets the overall direction, strategy, and annual work program.

The number of investment products marketed as ‘green’ or making wider sustainability claims is on the rise. However, exaggerated, misleading, or unsubstantiated claims about Environmental, Social, and Governance (ESG) credentials damage confidence in these products. The FCA aims to ensure that consumers and firms can trust that products have the sustainability characteristics they claim to have.

To address sustainable finance as a collective priority, the FCA and GFIN will launch a virtual TechSprint on the FCA’s Digital Sandbox. The TechSprint will bring together international regulators, firms, and innovators to develop a tool or solution that can effectively tackle the risks of greenwashing in financial services.

The TechSprint will run for three months, from June 5 to September 2023, and will end with a showcase day. UK-based firms can apply to take part from April 17, 2023. The application window will remain open for four weeks.

To assist firms interested in participating, the GFIN has provided an information pack. Successful applicants will proceed to onboarding, which will take place on June 1-2. During the onboarding process, firms will receive training on the Digital Sandbox and an in-depth overview of the TechSprint process.

Firms interested in applying to the GFIN Greenwashing TechSprint can review the list of participating regulators via the GFIN website.

Firms interested in contacting the FCA regarding the GFIN Greenwashing TechSprint can email GFIN@fca.org.uk.

SOURCE: The Financial Conduct Authority (FCA)