The Financial Conduct Authority (FCA) has delayed its plans to apply sustainability disclosure requirements (SDR) to portfolio managers.

It had proposed to apply a broadly similar approach to labelling for portfolio managers as already introduced for fund managers.

The FCA claimed that extending the SDR and labelling package to portfolio management would help consumers to navigate the sustainable investment market.

The regulator said that whilst feedback it has received in response to the 2024 consultation was widely supportive, the timing was not right.

The statement said: “Overall, there is broad support for extending SDR to portfolio management, with most respondents agreeing this is an important step toward improving consumer outcomes. However, we want to take time to carefully consider the challenges and ensure that portfolio managers are positioned to implement the regime effectively before introducing requirements.”

In its original proposal, the FCA had intended the application of SDR requirements for portfolio managers to come into force by December 2024.

In its latest update, the regulator said that in light of the feedback it has received it has “decided that it is not the right time to finalise rules on extending SDR to portfolio management”, and did not give any timeline for when it plans to revisit its proposals.

The regulator said that it intends to prioritise its upcoming review into model portfolio services (MPS), announced February 2024. The review will focus more broadly on how firms are applying Consumer Duty “to provide confidence that investors are receiving good outcomes from model portfolio services.”

The FCA also reminded portfolio managers of their obligation to comply with its anti-greenwashing rule which came into effect on 31 May 2024.