In July 2021, the U.K. Financial Conduct Authority (FCA) issued a set of guiding principles (Guiding Principles) for authorized fund managers (AFMs) with funds that pursue a responsible or sustainable investment strategy and claim to pursue sustainability or environmental, social or governance characteristics, themes or outcomes (ESG funds). The FCA recently conducted a review of how AFMs were applying the Guiding Principles to the design and operation of their ESG funds. This article discusses the FCA’s findings. See “FCA Seeks Input on Updating Asset Management Regulation” (Apr. 27, 2023).