The Swiss Federal Department of Finance (FDF) is set to develop a proposal for implementing measures to prevent greenwashing in the financial sector, following instructions from the Federal Council.
In December 2022, the Federal Council outlined its position on the prevention of greenwashing, a practice where clients are misled about the sustainability of financial products and services.
The FDF, in collaboration with various federal departments, the Swiss Financial Market Supervisory Authority (FINMA), the banking industry and non-governmental organisations, has been assessing the most efficient ways to implement these preventative measures.
After careful consideration of the working group’s input, the FDF has decided to propose a principles-based state regulation at the ordinance level, which could be complemented by industry self-regulation.
A consultation draft of the proposal will be submitted to the Federal Council by the end of August 2024 at the latest.
However, if the financial industry is able to present an effective self-regulation solution that aligns with the Federal Council’s position, the FDF has stated it will not pursue further regulatory efforts.
The approach aims to strike a balance between necessary government intervention and allowing the industry to take the initiative in preventing greenwashing.
© 2023 funds europe
