This browser is not actively supported anymore. For the best passle experience, we strongly recommend you upgrade your browser.
Norton Rose Fulbright logo
  • Global
  • About
    • Back
    • About
    • Our firm
      • Back
      • Our firm
      • Clients
      • Global coverage
      • Vision, culture and people
      • Governance structure
      • Risk management
      • NRF Transform
      • Alumni
    • Diversity, Equity & Inclusion
      • Back
      • Diversity, Equity & Inclusion
      • Our people
      • Recognition
      • Governance
    • Corporate responsibility
      • Back
      • Corporate responsibility
      • Pro bono
      • Volunteering
      • Fundraising
      • Sustainable practice
      • Global charitable initiatives
    • Photo montage
      RE:

      Read our magazine
  • People
  • Services
    • Back
    • Services
    • Services A-Z
    • Key industries
      • Back
      • Key industries
      • Consumer markets
      • Energy, infrastructure and resources
      • Financial institutions
      • Life sciences and healthcare
      • Technology
      • Transport
    • Practices
      • Back
      • Practices
      • Antitrust and competition
      • Banking and finance
      • Bankruptcy, financial restructuring and insolvency
      • Climate change and sustainability
      • Consulting
      • Corporate, M&A and securities
      • Employment and labor
      • Energy
      • Environmental, social and governance (ESG)
      • Financial services and regulation
      • Information governance, privacy and cybersecurity
      • Intellectual property
      • Litigation and disputes
      • Private equity and venture capital
      • Projects
      • Real estate
      • Regulation and investigations
      • Risk advisory
      • Tax
      • Banking and finance
      • Climate change and sustainability
      • Corporate, M&A and securities
      • Energy
      • Financial services and regulation
      • Intellectual property
      • Private equity and venture capital
      • Real estate
      • Risk advisory
    • NRF Transform
    • Transform image

      Find out more
  • Insights
    • Back
    • Insights
    • NRF InstituteProfessional developmentResources and tools
    • PublicationsBlogsVideos
    • EventsWebinarsPodcasts
    • colorful light particles
      Sustainability and ESG

      Visit the hub
  • News
    • Back
    • News
    • Press releases
    • Market recognitions
    • Media information
  • Locations
  • Careers
    • Back
    • Careers
    • Graduates and students
    • Search current vacancies
      • Back
      • Search current vacancies
  • Change
  • Global
    • Back
    • global site
    • North America
      • Canada (English)
      • Canada (Français)
      • United States
    • Latin America
      • Latin America
      • Brazil
      • Mexico
    • Europe
      • Belgium
      • Deutschland (Deutsch)
      • France
      • Germany (English)
      • Greece
      • Italy
      • Luxembourg
      • Poland
      • The Netherlands
      • Turkey
      • United Kingdom
    • Middle East
    • Africa
      • Africa
      • Burundi
      • Kenya
      • Morocco
      • South Africa
      • Uganda
      • Zimbabwe
    • Asia Pacific
      • Australia
      • China
      • Hong Kong SAR
      • Indonesia
      • Japan
      • Singapore
      • Thailand
    • Regional practices
      • India
      • Israel
      • Korea
      • Marshall Islands
      • Nordic region
      • Pakistan
      • Vietnam
Lake in the forest

Connections

Insights, perspectives and viewpoints from our lawyers on topical issues

All Posts Subscribe
print-logo
10/3/2023 11:37:34 AM | 2 minute read

The FCA's proposed new "anti-greenwashing" rule: What does it mean for UK banks (and how we can help)?

Sustainble green building. Eco-friendly building. Sustainable glass office building with tree for reducing carbon dioxide. Office with green environment. Corporate building reduce CO2. Safety glass.
1
126

Get in touch

Avatar
David Milligan
Partner
Avatar
Matthew Gregory
Partner

Get in touch

Avatar
David Milligan
Partner
Avatar
Matthew Gregory
Partner
1
126

Allegations of greenwashing have been rising in the banking sector, prompting the FCA to propose a new "anti-greenwashing” rule to address greenwashing concerns. Under the proposed rule, any communication about financial services or products that claims sustainability characteristics, must be “clear, fair and not misleading” and consistent with the sustainability profile of the product or service.

Banks already face a complex legal and regulatory framework when it comes to providing financial services and products, whether they have sustainability-related features or not. The proposed new ‘general anti-greenwashing rule’ comes on top of these existing rules, as part of its package of measures to deliver a new sustainability disclosure regime (SDR) in the UK.

What do risk and compliance teams need to know?

If implemented as per the FCA's consultation, the proposed rule will apply to all FCA-regulated firms, which will include all UK banks, and is expected to be in play by the end of the year.

This would be a major new development to the legal and regulatory requirements which UK banks must comply with and will have far-reaching implications across their business, from ‘unregulated’ corporate and wholesale lending through to ‘retail market business’ in all its forms. It also means that, in the wake of numerous ASA decisions in respect of UK banks in relation to ‘greenwashing’, this topic will once again need to be a major focus of banks’ risk and compliance teams.

It is important for compliance teams to be aware that the rules would apply to all customer communications – not just those in relation to marketing new financial products, with an overarching objective being to protect consumers, in line with the FCA’s new Consumer Duty.

What will banks need to do?

Banks will be required to scrutinise the integrity of the existing sustainability statements and claims of all their financial services and products. This, in itself, will be a big undertaking that may require third party reviews and assistance. To assist in this task, we have developed an intuitive tool to accelerate firms’ risk assessments and exposure to this potential new rule and greenwashing risks in general. Get in touch for more information.

In addition, banks may need to develop internal taxonomies alongside firmwide training for staff on how to accurately discuss, describe and promote these products using correct terminology across all their communication channels.

Banks will need to start addressing the challenges now as the FCA have stated there will not be an implementation period, although timing is still uncertain. Those who aren’t prepared can expect fines, public censure and reputational damage.

Are you ready?

Subscribe to our Connections insights Sign-up now

Tags

financial institutions, banking and finance, esg, financial service regulation, consumer duty, esg and sustainability

Get in touch

Avatar
David Milligan
Partner
Avatar
Matthew Gregory
Partner

Get in touch

Avatar
David Milligan
Partner
Avatar
Matthew Gregory
Partner
Key takeaways from MIPIM 2025: Future-proofing data centres
3/25/2025 4:21:32 PM

Key takeaways from MIPIM 2025: Future-proofing data centres

By Kirsty Harrower
As the digital infrastructure landscape continues to evolve, increasing AI workloads present both challenges and opportunities for data...
1
36
37

Latest Insights

Greece enters the FDI screening arena: What the new law means for investors
5/27/2025 10:59:09 AM

Greece enters the FDI screening arena: What the new law means for investors

By Alexandra Rogers Angelos Vlazakis
92
92
"If you can't see it, you can't be it": Key takeaways from our Women in Aviation breakfast breakout
5/21/2025 2:13:41 PM

"If you can't see it, you can't be it": Key takeaways from our Women in Aviation breakfast breakout

By Georgie Field
Late payments under Polish Competition Authority scrutiny: Is your company compliant?
5/15/2025 8:31:51 AM

Late payments under Polish Competition Authority scrutiny: Is your company compliant?

By Wojciech Janik
14
14

Explore our site

  • About
  • Careers
  • Diversity, equity and inclusion
  • People
  • Services
  • Insights
  • News

Key industries

  • Consumer markets
  • Energy, infrastructure and resources
  • Financial institutions
  • Life sciences and healthcare
  • Technology
  • Transport

Locations

  • Global coverage

Norton Rose Fulbright © 2024. All Rights Reserved.

  • Amsterdam
  • ●
  • Athens
  • ●
  • Austin
  • ●
  • Bangkok
  • ●
  • Beijing
  • ●
  • Brisbane
  • ●
  • Brussels
  • ●
  • Bujumbura**
  • ●
  • Calgary
  • ●
  • Canberra
  • ●
  • Cape Town
  • ●
  • Casablanca
  • ●
  • Dallas
  • ●
  • Denver
  • ●
  • Dubai
  • ●
  • Durban
  • ●
  • Düsseldorf
  • ●
  • Frankfurt
  • ●
  • Hamburg
  • ●
  • Harare**
  • ●
  • Hong Kong SAR
  • ●
  • Houston
  • ●
  • Istanbul
  • ●
  • Jakarta*
  • ●
  • Johannesburg
  • ●
  • Kampala**
  • ●
  • London
  • ●
  • Los Angeles
  • ●
  • Luxembourg
  • ●
  • Melbourne
  • ●
  • Mexico City
  • ●
  • Milan
  • ●
  • Minneapolis
  • ●
  • Monaco
  • ●
  • Montréal
  • ●
  • Munich
  • ●
  • Newcastle
  • ●
  • New York
  • ●
  • Nairobi**
  • ●
  • Ottawa
  • ●
  • Paris
  • ●
  • Perth
  • ●
  • Piraeus
  • ●
  • Québec
  • ●
  • Riyadh*
  • ●
  • San Antonio
  • ●
  • San Francisco
  • ●
  • São Paulo
  • ●
  • Shanghai
  • ●
  • Singapore
  • ●
  • St. Louis
  • ●
  • Sydney
  • ●
  • Tokyo
  • ●
  • Toronto
  • ●
  • Vancouver
  • ●
  • Warsaw
  • ●
  • Washington DC *associate office **alliance
  • Legal notices and disclaimers
  • Impressum
  • Standard terms
  • Blog network terms and conditions
  • Cookies policy
  • Privacy notice
  • Website access conditions
  • Fraud alerts
  • Modern Slavery Statements
  • Health plan machine readable files
  • Anti-Facilitation of Tax Evasion Statement
  • Suppliers
  • History
  • Remote access
  • Sitemap
Offices and locations

Norton Rose Fulbright © 2024. All Rights Reserved.

  • Amsterdam
  • ●
  • Athens
  • ●
  • Austin
  • ●
  • Bangkok
  • ●
  • Beijing
  • ●
  • Brisbane
  • ●
  • Brussels
  • ●
  • Bujumbura**
  • ●
  • Calgary
  • ●
  • Canberra
  • ●
  • Cape Town
  • ●
  • Casablanca
  • ●
  • Dallas
  • ●
  • Denver
  • ●
  • Dubai
  • ●
  • Durban
  • ●
  • Düsseldorf
  • ●
  • Frankfurt
  • ●
  • Hamburg
  • ●
  • Harare**
  • ●
  • Hong Kong SAR
  • ●
  • Houston
  • ●
  • Istanbul
  • ●
  • Jakarta*
  • ●
  • Johannesburg
  • ●
  • Kampala**
  • ●
  • London
  • ●
  • Los Angeles
  • ●
  • Luxembourg
  • ●
  • Melbourne
  • ●
  • Mexico City
  • ●
  • Milan
  • ●
  • Minneapolis
  • ●
  • Monaco
  • ●
  • Montréal
  • ●
  • Munich
  • ●
  • Newcastle
  • ●
  • New York
  • ●
  • Nairobi**
  • ●
  • Ottawa
  • ●
  • Paris
  • ●
  • Perth
  • ●
  • Piraeus
  • ●
  • Québec
  • ●
  • Riyadh*
  • ●
  • San Antonio
  • ●
  • San Francisco
  • ●
  • São Paulo
  • ●
  • Shanghai
  • ●
  • Singapore
  • ●
  • St. Louis
  • ●
  • Sydney
  • ●
  • Tokyo
  • ●
  • Toronto
  • ●
  • Vancouver
  • ●
  • Warsaw
  • ●
  • Washington DC *associate office **alliance
Policies and disclaimers
  • Legal notices and disclaimers
  • Impressum
  • Standard terms
  • Blog network terms and conditions
  • Cookies policy
  • Privacy notice
  • Website access conditions
  • Fraud alerts
  • Modern Slavery Statements
  • Health plan machine readable files
  • Anti-Facilitation of Tax Evasion Statement
  • Suppliers
  • History
  • Remote access
  • Sitemap
Visit our global site, or select a location
North America
  • Canada (English)
  • Canada (Français)
  • United States
Latin America
  • Brazil
  • Mexico
Europe
  • Belgium
  • Deutschland (Deutsch)
  • France
  • Germany (English)
  • Greece
  • Italy
  • Luxembourg
  • Poland
  • The Netherlands
  • Turkey
  • United Kingdom
Middle East
Africa
  • Burundi
  • Kenya
  • Morocco
  • South Africa
  • Uganda
  • Zimbabwe
Asia Pacific
  • Australia
  • China
  • Hong Kong SAR
  • Indonesia
  • Japan
  • Singapore
  • Thailand
Regional practices
  • India
  • Israel
  • Korea
  • Marshall Islands
  • Nordic region
  • Pakistan
  • Vietnam