Brexit may soon provide UK-based hedge funds with a competitive edge in ESG investing over their EU-based counterparts, according to a report by Bloomberg.

While the hedge fund industry has criticised EU regulators for not including clear guidelines for short-selling when it comes to ESG investing, the UK's FCA seems willing to ensure that the role of short-selling in ESG investing is included in its upcoming ESG rulebook.

Bloomberg quotes an email from the FCA as saying that: “we [the FCA] need to ensure that our regulatory framework is appropriately designed to accommodate the breadth of ESG strategies observed in the market".