Regulator warns of 'greenwashing' of financial products

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The Central Bank has warned investors that the growth of the sustainable finance market has increased the risk that some financial products are not as sustainable as claimed.

The regulator claims such"greenwashing" can see investor demand addressed by products that are marketed as sustainable but in reality are not.

The annual Securities Markets Risk Outlook Report identifies key risks to securities markets in the coming year.In the report, the bank also says it is highly unlikely at present that it will give approval for funds that are generally aimed at retail investors to begin investing in crypto assets. Many cryptocurrencies have been the subject of extreme volatility and wild swings in value in recent years, prompting concern among regulators about their appropriateness as an investment class.

"Retail investing in and of itself is not a concern, but there is a risk of bad actors potentially taking advantage of social media platforms to manipulate the market," it said. The regulator's report also states that it is essential that all firms operating in the stock market have appropriate plans in place to deal with the threat of cyberattacks.

 

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