There are huge numbers of funds seeking to register as being ESG-focused funds or re-labelling themselves as sustainability-focused, said Mhairi Jackson, policy lead in asset management at the Financial Conduct Authority.

"We have seen some passive funds with ESG related names that are actually just passive funds... that don't have any ESG focus, which we deem to be completely misleading," Mhairi told a conference held by Luxembourg funds industry body Alfi.

(Reporting by Huw Jones; Editing by Mark Potter)