Swedish regulator to screen funds for ‘green painting’
Sweden’s financial regulator said it will start reviewing funds to enforce new sustainable regulations and to prevent “green painting.”
The Swedish Financial Supervisory Authority, or Finansinspektionen, said it will review “whether the information provided about the funds that are classified as most sustainable meets the strict requirements” of sustainable finance disclosure regulation rules implemented in March 2021.
In a notice on its website Tuesday, FI said that as demand for green and sustainable funds increases rapidly, “this entails the risk of green painting, i.e. that activities and products are presented as more sustainable than they are in practice.”
The regulator has identified green painting as one of the biggest risks in the financial sector for 2022, and made it one of five priority areas, the notice said.
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