Don’t restrict sustainable labelling to retail

Mike Taylor

Managing Editor and Publisher

30 March 2026

The major accounting groups have sent the Government a clear message that its Sustainable Investment Products labelling regime should not be restricted to just retail products.

The accounting groups have pointed out that such a move would run counter to the Government’s SFR which declares a need for consistency including across managed funds and superannuation.

“A ‘sustainability’ regime restricted to retail financial products does not align with the Government’s own commitment to ensure consistent labels and disclosure requirements for investment products more broadly,” the joint submission from Chartered Accountants ANZ, CPA Australia, the Institute of Public Accountants and SMSF Association said.

“The broad application also aligns with the objective of element two of the SFR, that is high-quality disclosure reduces information asymmetry, supports informed decision making and strengthens investor confidence,” it said.

“Further, applying the regime to all investment products ensures investors who invest through platforms or those who are not truly wholesale (however fall within the definition due to the outdated thresholds) are also afforded the same disclosure protections in relation to sustainability considerations.” The submission said

“For wholesale products, the obligation should apply to any marketing or investor facing material that is issued by the product provider. There should also be a duty on platforms to communicate any sustainability claims to investors,” it said.

Elsewhere in the joint submission the accounting groups said they do not support the introduction of a separately identified ‘consumer facing disclosure’ (CFD) requirement.

“The regulatory framework is already excessively complex, and as the acronym already exists for another purpose, this would lead to confusion,” they said “We do not agree that the fact that the term CFD is used in some other countries is reason enough to