John ConnorOne year after the launch of the Financial Services Growth and Competitiveness Strategy, the Government has published an update. It notes key achievements of the past year as: putting the FSM Bill before Parliament...
Category - Sustainable Finance
Emma RadmoreFCA announces launch of climate scenarios regulatory sandbox
The FCA is launching a sandbox cohort testing innovative climate scenario tools and approaches. Firms and specialists who incorporate innovative approaches to climate scenarios and are ready to test their climate...
Laura Wiles
FCA proposes simplified climate disclosure rules
The FCA has published its latest quarterly consultation on miscellaneous amendments to its Handbook. Proposed amendments include: Following a post-implementation review of climate disclosure rules, simplifying...
Why financing decarbonisation has become a smart investment
Simon Crichton, head of nature, food and resource at Triodos Bank UK and I (Chris) recorded a podcast for The Scotsman on why financing decarbonisation has become a smart investment. Read a summary of it and listen to...
Chris McLauchlanFCA publishes findings from Transition Finance Pilot
The FCA has published its findings from the Transition Finance Pilot in which it looked at barriers to scaling finance for climate solutions. During the exercise, which also involved the PRA and the Green Finance...
UK Private Capital reports on supporting the green transition
UK Private Capital has published a report on the role private capital plays in supporting the green transition. It notes that a monumental effort is needed to meet the net zero 2050 commitment, alongside tens of...
Smart investment for a green future
We are pleased to have recorded a podcast for The Scotsman on financing decarbonisation. Listen to me (Chris), discussing it with Simon Crichton, Head of Nature, Food and Resource at Triodos Bank UK. Previously...
UK-Japan financial regulatory forum reports on progress
The fourth meeting of the UK-Japan financial regulatory forum took place on 18 March between HM Treasury and the Japan Financial Services Agency. The forum discussed: digital finance, with the UK updating on its plans...
Government writes to Commons ahead of finalised UK SRS
The Department of Business & Trade wrote to the House of Commons Business and Trade Committee at the end of February to herald the imminent publication of the finalised UK Sustainability Reporting Standards, which...
Treasury publishes TCFD reporting good practice guide
HM Treasury has published guidance on good practice in preparing annual reports and account to deliver transparent climate disclosures that will help decision making. The guidance comes ahead of the last stage of the...
FCA updates on SDR labels
The FCA has published examples of good and poor practice on using labels under the SDR regime. The labels were introduced in July 2024, and the FCA has found gradual improvements as firms have become familiar with...
FCA consults on aligning sustainability disclosure requirements with international standards
The FCA is consulting on evolving its rules for listed companies’ sustainability disclosures to aligning with the UK Sustainability Reporting Standards (SRS), which are themselves based on the International...
ESG Ratings RAO changes made
The FSMA (Regulated Activities)(ESG Ratings) Order 2025 has introduced a new regulated activity in article 63U of the RAO of providing an ESG rating where that rating is likely to influence a decision to make an...
PRA updates policy on managing climate-related risks
The PRA has published its final policy on enhancing banks’ and insurers’ approaches to managing climate risks. The consultation had planned – among other things – to strengthen governance...
FPC publishes December update
The records of the FPC meetings on 25 November and 1 December note that: risks to financial stability have increased during 2025 for a variety of reasons, including fragmentation of trade and financial markets; many...
FCA consults on ESG rating reform
The FCA is consulting on new rules that will ensure that ESG ratings are transparent, reliable and comparable. It says around half of ESG ratings users are concerned about how the ratings are built and their...
Chancellor sets FPC remit and recommendations with Budget
As part of the Budget announcements, the Chancellor published a letter to the Governor of the BoE with recommendations for the FPC. The letter focuses on the government’s often-stated priority of regulating for...
Unlocking opportunities: vital role of carbon credits in net-zero ambition
As Scotland moves towards its target of being net zero by 2045, we’ve looked at how carbon credits are transforming the environmental and business landscape in an article in The Scotsman. If you would like to...
NGFS publishes Guide on Climate Scenario Analysis
The Network for Greening the Financial System (NGFS) has updated its Guide on Climate Scenario Analysis. The new edition reflects significant progress made in this area since the last version in 2020, and highlights...
FCA speaks on transition finance
Alicia Kedzierski has spoken to the LMA conference on raising standards in sustainable lending. She said the FCA has seen improvements in the sustainability-linked loan market, but that we need to be clear on what...
FCA pleased to move forward on ESG rating provider regulation
Following the Chancellor’s confirmation that the Government has finalised the legislation to bring ESG ratings providers within FSMA scope, the FCA says it can now consult on its proposed rules for relevant firms...
FCA speaks on the UK’s role in sustainable finance
Ashley Alder, FCA Chair, spoke at the Climate Financial Risk Forum Symposium, on the opportunities the UK offers to become the world’s sustainable finance centre. He spoke of the risks of climate change, and how...
FCA updates on Consumer Duty requirements and focus areas
Following its call for input on the Consumer Duty requirements, the FCA has set out progress on the action it has taken so far, and further action it plans to take following stakeholder input. Priorities for...
Transition Finance Council consults on guidelines for funders
The Transition Finance Council is consulting on draft guidelines aimed at supporting capital allocation to transitioning entities across different asset classes and jurisdictions, with a focus on financing entities that...
FCA encouraged by sustainability-linked loans market progress
The FCA has published a letter in which it shares insights from its ongoing engagement with banks in the sustainability linked loans market. The FCA comments that SLLs can be a useful transition financing tool for...
FCA publishes multi-firm review on climate reporting rules
The FCA has published findings from its review of climate reporting by asset managers, life insurers and FCA-regulated pension providers. In 2021, the FCA finalised its climate disclosure rules, requiring the above...
Unlocking global opportunities – carbon credits
We’ve written an article on how the U.S. policy shift on carbon credits may lead businesses to reconsider where they invest and operate, and the position of the carbon market Scotland and the UK generally –...
UK Green Taxonomy not happening
The government has assessed the responses to its consultation on developing a UK Green Taxonomy and has concluded that it is not the best way to deliver the green transition and should not be part of the UK’s...
The new Scottish security regime – we’ve updated our guide
Under the Moveable Transactions (Scotland) Act 2023, major changes to how to create effective fixed security over certain types of assets located in Scotland (including Scottish shares and bank accounts) took effect on 1 April 2025.
Two new forms of fixed security over assets � a statutory pledge and an assignation of claims � introduce more streamlined ways of taking fixed security over certain assets, reduce the administrative burden, and allow fixed security to be created over current and future assets (including by certain individuals and corporate entities which can’t grant floating charges).
For current and potential deals, lenders/security agents should consider taking security over Scottish assets under the new regime (and for existing deals, whether there is scope under existing debt documents (for example, undertakings or further assurance provisions) to take advantage of the new regime to have a more robust Scottish security package).
We’ve updated our guide to the Act. Please contact [email protected] and/or [email protected] if you have any questions.
FMSB publishes good practice statement for sustainability-linked products
The FMSB has released a Statement of Good Practice for the governance of sustainability-linked products: that is, product whose characteristics very depending on whether the user achieves set sustainability or ESG...
Michael LewisPRA consults on management of climate-related risks
The PRA is proposing updates to its Supervisory Statement 3/19 on how banks and insurers manage climate-related risks. The speed of climate change and the widespread adverse impact over recent years can directly affect...
FCA pauses extension of SDR regime to portfolio managers
Per its announcement in February 2025, the FCA has confirmed that it will not be publishing a policy statement on plans to extend the Sustainability Disclosure Requirements (SDR) and investment labels regime to...
TheCityUK reports on UK position in global climate financing markets
The City of London Corporation and the UK Carbon Markets Forum have published a report that highlights the strengths of the UK as a global leader in climate finance. The key factors that position the UK as a global...
FCA updates Regulatory Initiatives Grid
The updated Regulatory Initiatives Grid highlights many initiatives for various regulators relevant to the financial markets, including: during 2025: further action plan on FCA requirements in light of Consumer Duty...
FCA refreshes Sustainable Finance Advisory Committee membership
The FCA has renamed the former ESG Advisory Committee and it is now the Sustainable Finance Advisory Committee. The Committee advises the FCA board on emerging sustainability issues, including ensuring the FCA has...
FCA pleased with sustainability feedback
The FCA has published a summary of the feedback it received to its 2023 Discussion Paper on “finance for positive sustainable change“. Key themes from responses included: agreeing that it is important that...
EU Sustainable Finance advisory group suggests changes to Climate Delegated Act and taxonomy
The Platform on Sustainable Finance, which advises the European Commission, has published an independent report on advancing sustainable finance. The European Commission had asked it to: review and recommend any...
FCA launches ESG ratings provider survey
The FCA is asking ESG ratings providers to complete a voluntary survey which will help to shape future regulation of ESG ratings and sustainability disclosures more generally. It wants to understand: the business models...
EU think tank proposes SME sustainable finance framework to encourage lending
EU advisory body the Platform on Sustainable Finance has proposed a streamlined, voluntary framework for financial institutions to classify loans or other types of financing provided to SMEs as sustainable finance. It...
FCA sets out asset management and alternatives supervisory priorities
The FCA has published its portfolio supervision letter sent to the asset management and alternatives sector. It notes five priority areas: supporting confident investing in private markets: the FCA sees increasing...
FCA delays decision on SDR extension
The FCA has confirmed that it will no longer imminently be publishing its feedback statement on the proposed extension of the SDR and investment labels regime to portfolio management. The FCA is aware that fund managers...
UK Finance members unsure of value of UK Green Taxonomy
The UK Finance response to the Treasury’s consultation on a UK Green Taxonomy shows that members hold different views as to whether a taxonomy would be useful in supporting the Government’s objectives. On...
PRA publishes Climate Change Adaptation report
Hot on the heels of the FCA, the PRA has published its Climate Change Adaptation report. This is the PRA’s third report on the subject and focuses on the prudential impact on banks and insurers. Like the FCA, it...
Treasury publishes more responses on strategy recommendations
HM Treasury has published responses from the Prudential Regulation Committee and Financial Policy Committee to its letters setting out recommendations. the Prudential Regulation Committee response notes what the PRA has...
FCA publishes climate change “adaptation” report
The FCA has published a report requested by DEFRA, looking at the major issues that affect climate change adaptation in the financial services industry. Its research and its discussions with firms highlighted 3 major...
Opportunities and risks for Scottish financial institutions
We wrote a piece for the Scotsman on the risks and opportunities the new GB Energy HQ in Aberdeen presents for financial institutions in Scotland – not least in the demand for financing for renewable energy...
FSB considers relevance of climate transition plans for financial stability
The Financial Stability Board (FSB) has published a report on the relevance of climate transition plans for financial stability. The FSB found that in providing forward looking information, climate transition plans can...
Green Finance Institute sets new taxonomy
The Green Finance Institute’s Land, Nature and Adapted Systems Advisory Group has published advice with a taxonomy for mobilising adaptation and resilience investment in the UK. Its report says that in the absence...
ShareAction writes to banks on sustainable finance
ShareAction has written to the CEOs of the 20 largest banks in Europe, urging them to set targets based in science to show how they are funding sectors that are crucial to net-zero transition. The charity has previously...
ASA rules on Lloyds ads green claims
The ASA has published its ruling in relation to 4 challenges brought in relation to a poster and three paid-for LinkedIn posts from Lloyds. It upheld 1 of the challenges only: in relation to the poster, this showed a...
FCA updates perimeter report
The FCA has updated its Perimeter Report. The report highlights the FCA’s remit and powers, including the new Designated Activities Regime, and then lists the key areas of harm linked to the perimeter and some key...
FCA speaks on sustainable investment products
Sacha Sadan, the FCA’s director of sustainable finance, has spoken on the impact of the sustainable investment product regime. He noted that the FCA’s Financial Lives survey had shown that 81% of adults...
FCA reacts to Mansion House speech
The FCA has reacted to several announcements from the Mansion House speech. It has reiterated that it is committed to supporting growth and says it has fully embraced its secondary international competitiveness and...
Treasury consults on Green Taxonomy
HM Treasury is consulting on the value case for a UK Green Taxonomy as part of the UK’s wider sustainable finance framework. The government wants to support investment into activities aligned with sustainability...
A new regulatory regime for ESG ratings providers
HM Treasury has published the outcome of its consultation on the new regulatory regime for ESG ratings providers and the draft legislation that will create it. The regime will be created through the RAO, and the...
Mansion House speech heralds 5 priority growth areas
The Chancellor’s first Mansion House speech stressed the importance of the financial services industry to the UK and highlighted 5 priority growth opportunities on which the Government will focus its strategy:...
FCA speaks on transition finance
Emily Shepperd, speaking at the UK Sustainable Investment and Finance Association Leadership Summit, spoke of the role the financial services sector can play in helping to plug the net zero gap. She spoke of the...
Transition Plan Taskforce publishes final report
The Transition Plan Taskforce has finished its work and published its final report, which identifies key opportunities and challenges for global adoption of transition plans. Dame Amanda Blanc and Tulip Siddiq, Co...
FCA publishes SDR and investment labels disclosure examples
The FCA has published examples across a section of investment labels to demonstrate how firms might meet disclosure requirements under the Sustainability Disclosure Requirements (SDR) and investment labels regime, which...
TNFD publishes guidance on nature transition planning
The Taskforce on Nature-related Financial Disclosures has published a discussion paper containing draft guidance on nature transition planning for corporates and financial institutions when developing a transition plan...
FCA welcomes TFMR report
The FCA has welcomed the report and recommendations from the Transition Finance Market Review. The review looks at the opportunities that transition finance presents for the UK and the hugely important role of private...
UK-Switzerland financial dialogue discusses AI
The first formal meeting of the UK-Switzerland Financial Dialogue since the conclusion of the Berne Agreement took place on 15 October. Among the topics discussed were: domestic implementation of the Berne agreement...
FCA updates Climate Financial Risk Forum pages
The FCA has updated its CFRF information on its website with details of the October 2024 guides. The new guides relate to: nature-related risk – a handbook for financial institutions; short term scenarios; and...
UNEFI publishes responsible banking blueprint
The UN Environment programme finance initiative (UNEFI) has published a responsible banking blueprint, setting out a roadmap for action. It looks at: strategy internal processes and policies portfolio composition and...
Government updates on UK Sustainability Reporting Standards
The Department for Business and Trade has updated on the Government’s framework creating UK Sustainability Reporting Standards (SRS). In 2023, the International Sustainability Standards Board published standards...
FCA allows temporary flexibility against sustainability “name and shame”
The FCA is allowing firms temporary flexibility to comply with its “naming and shaming” rules in respect of sustainability disclosures. The rules take effect from 2 December and firms should be taking all...
FCA adds sustainability labels to website guidance
The FCA has updated its website page on the sustainability disclosure and labelling regime to include downloadable labels for firms to use.
Investment Association reports on climate and nature policy
The Investment Association has published its latest “Financing Transition” report, which outlines its approach to climate change and nature-related policy. Key commitments include: supporting credit...
TFND updates guidance
The Taskforce on Nature-related Financial Disclosures has announced a significant increase in take up in adopting its standards, and has updated and published new guidance for several sectors. The updates include...
Green Party proposes mutual banks to drive decarbonisation investment
Of relevance to financial institutions in the Green Party manifesto are proposals to create regional mutual banks to drive investment in decarbonisation and local economic sustainability.
Lib Dem manifesto prioritises financial inclusion
The Liberal Democrat manifesto, published on 10 June, includes several commitments in relation to the financial services sector, such as: expanding the British Business Bank to perform a more central role in the...
City Corp and Climate Policy Initative report on progress to net zero
A research report from the City of London Corporation and the Climate Policy Initiative looks at the significant progress financial services firms have made in efforts to address climate change. They say increasing...
FCA sustainability disclosure and labelling regime takes effect
The FCA’s new anti-greenwashing rules and guidance took effect on 31 May. Firms must make sure any claim about the sustainability of their products and services is clear, fair and not misleading. They should also...
FCA heralds sustainable investment labelling
The FCA has confirmed that investment funds that meet criteria for environmental or social goals will be labelled, so investors can more clearly see what they are investing in. From 31 July 2024, four labels will be...
Harry WellsUK and Singapore strengthen FinTech and sustainable finance cooperation
The 9th dialogue of the UK-Singapore financial dialogue focussed on: commitment to scale financing in support of the net zero agenda, including transition planning and disclosure and rating standards; fintech and...
NGFS publishes Transition Plan Package
The Network for Greening the Financial System has published its Transition Plan Package. It has published three detailed reports on: considerations for emerging markets and developing economies in tailoring transition...
Transition Plan Taskforce updates plan resources
The TPT has published its final set of transition plans. The resources make use of the international best practice framework for plans and include: sector-specific guidance for entities such as asset managers and banks;...
FCA publishes Business Plan 2024/2025
The FCA’s 2024/25 Business Plan highlights the work carried out to date, and what it plans to do in the coming year, the final year of its 3 year strategy. The strategy continues a focus on delivery of the...
Transition Finance Market Review calls for evidence
The TFMR has issued a call for evidence, open until 25 April 2024, seeking views to help its future work. The TFMR was launched in January and will report in the summer. It proposes to take a broad view of what...
Government responds on net zero recommendations for financial sector
The Government has responded to the Environmental Audit Committee’s recommendations in respect of boosting the role of the financial sector in achieving net zero. It says it won’t introduce quarterly...
FCA speaks to EU on global cooperation
Ashley Alder, FCA Chair, has spoken at the UK Mission to the EU on the importance of regulatory cooperation and open markets, and the relationship the UK now hopes to build with the EU under the 2023 MoU. He said that...
UK Finance responds on anti-greenwashing guidance
UK Finance has responded to FCA’s consultation on its proposed Anti-Greenwashing Rule. It supports FCA’s overall intent, but suggests several areas where the guidance could be clearer. Particularly, it wants...
LSB publishes lending standards consultation responses
The Lending Standards Board (LSB) has published its response to the views received on its consultation on a review of the Standards of Lending Practice (the Standards) for business customers. The review itself was...
Stephen WilsonNew FCA webpage on sustainability disclosure and labelling regime
Following the publication of its policy statement in November 2023, the FCA has launched a new webpage on the sustainability disclosure and labelling regime. The webpage sets out the steps firms should take in...
EEA states “equivalent” for overseas funds
Baroness Vere of Norbiton, Treasury Lords Minister, has announced that the Government has decided that all EEA states have been assessed as “equivalent” for the purposes of the UK’s Overseas Funds...
TheCityUK shows strength of UK financial services sector
TheCityUK’s annual report on the UK’s position as an international financial centre says that exports relative to imports of financial and related professional services shows how competitive UK industry is...
FCA establishes industry-led working group for financial advisers
As part of a package of measures to support the UK’s position as a world-leading, competitive centre for asset management and sustainable investment, the new industry-led working group for financial advisers is...
FIN. TeamJR application on climate-risk disclosure fails
The High Court has refused an application by ClientEarth for permission to apply for judicial review of FCA’s approval of Ithaca Energy plc’s prospectus. The Court said it could not be argued that the...
FCA reflects on 2023
Nikhil Rathi has reflected on some of FCA’s key achievements and milestones from 2023. He highlighted: the implementation of the Consumer Duty and changes firms have already made as a result; FCA telling GAP...
Government commissions Transition Finance Market Review
The Government has now commissioned the market-led review into growing transition finance in the UK, originally announced in its 2023 Green Finance Strategy to help higher emitting companies and activities to...
FCA makes new rules
FCA has published new rules including amendments to: introduce the requirements on Sustainability Labelling and Disclosure (from 28 November 2023) update SYSC from 8 December in respect of changes to the proportionality...
FCA welcomes ESG ratings code
FCA has welcomed the launch of the ICMA and IRSG voluntary code for ESG ratings and data products providers. It has encouraged all relevant providers to sign up to it. The Code sets principles on: Good Governance...
FCA confirms sustainability disclosure and labelling regime
FCA has confirmed new rules that should give investors greater confidence in sustainability-related claims about investments. The package consists of: an anti-greenwashing rule, effective from 31 May 2024 that will...
UK and Japan discuss cooperation
The 2nd Financial Regulatory Forum (FRF) and the 5th Financial Dialogue (FD) between Japan and the UK was held on 27 November 2023 and a joint statement summarised the key discussion points. Overall, both countries hope...
FCA calls for improvement in fund manager ESG principles
FCA has carried out a review as a follow up to its Dear Chair letter of July 2021 to authorised fund managers. It found that most firms have tried to comply with FCA’s expectations on design, delivery and...
FCA writes to RemCo chairs
FCA has written a “Dear Chair” letter to the chairs of Remuneration Committees of proportionality level one dual regulated firms. The letter: stresses that in times of continuing cost of living pressures...
Treasury responds on Edinburgh Reforms progress
Treasury has responded to a request from the Treasury Committee for an update on delivering the Edinburgh Reforms. It notes: reform of the ring-fencing regime: this is in progress with draft legislation being published...
EU-UK Financial Regulatory Forum release joint statement
The first meeting of the EU-UK Forum took place on 19 October. It was attended by the UK and EU regulators and the ESAs. The shared objectives of the parties included the preservation of financial stability, market...
TPT Disclosure Framework published
The TPT Disclosure Framework, published by the Transition Plan Taskforce, contains guidance and recommendations to help companies make disclosures that are high quality, consistent and comparable. The aim of this is to...
UK-US Financial Regulatory Working Group meets
US Treasury and HM Treasury published a joint statement from the eighth Financial Regulatory Working Group meeting held on 6 September. Topics covered in the meeting included broad discussions on: Economic and financial...
GFIN Greenwashing TechSprint winners announced
FCA, as host of the first Global Financial Innovation Network Greenwashing TechSprint, has announced the firms presenting the best potential solutions for tackling the problem of greenwashing in financial services. ...
FCA speaks on international collaboration
Ashley Alder has spoken on the importance of collaboration in international financial services. He touched on the UK-EU MoU and current IOSCO initiatives. He spoke of global initiatives such as climate and...
UK Sustainability Disclosure TAC issues call for evidence
The Financial Reporting Council (FRC), acting as The Secretariat to the UK Sustainability Disclosure TAC, has issued a call for evidence seeking input to support the potential endorsement of the International Financial...