The Financial Conduct Authority's environment, social and governance director has said that the regulator will eventually start fining greenwashers, but only after it has finished putting in “guardrails” for the funds sector.

Sacha Sadan, who was appointed to the new role at the FCA in April 2021, told Financial News that the watchdog did not “want to go straight for the stick” by handing out hefty penalties for firms overstating their ESG credentials.