Michael LewisThe 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...
Category - sustainable finance
Emma Radmore
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...
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...
Chris McLauchlanFSB 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...
Laura WilesGreen 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...
Duncan ScottNew 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...
Vida FatemiJR 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...
FIN. TeamIRSG consults on draft ESG Provider code
The ESG Data and Ratings Code of Conduct Working Group and the International Regulatory Strategy Group, together with the International Capital Market Association, is consulting on a draft voluntary Code of Conduct for...
FCA outlines concerns with sustainability-linked loans market
FCA has published a letter to heads of ESG and sustainable finance, setting out its review of the sustainability-linked loans (SLL) market. Interest rates in SLLs are linked to meeting certain agreed sustainability...
FSM Bill gets Royal Assent
As expected, the Financial Services and Markets Act 2023 got Royal Assent on 29 June. Heralding it, Treasury described its key features as: bringing the ability to tailor financial services regulation to fit UK markets...
FSM Bill completes Parliamentary process
The FSM Bill returned to the Lords for consideration of the few amendments the Commons had made. These were agreed, and so the Bill has completed its Parliamentary passage and now awaits Royal Assent. It is expected to...
Commons reconsiders FSM Bill
On 26 June the House of Commons considered the version of the FSM Bill returned to it from the House of Lords. It published its views on aspects of the Bill where it disagrees with Lords changes. While there was...
FCA welcomes ISSB standard launch
FCA has welcomed the launch of the International Sustainability Standards Board‘s first set of sustainability-related reporting standards, which have been introduced to meet market demand for complete, consistent...
FCA speaks on cultural evolution
Emily Shepperd of FCA spoke on how culture needs to change to meet expectations. She focussed on how generational changes can fundamentally change culture. She said it is now critical to find a common path, for leaders...
FSMB back in Commons on 26 June
The FSMB will return to the Commons on 26 June, for the House to consider the version as amended in the Lords.
FSM Bill: Lords Report stage day 3
Day 3 of the debate on the FSM Bill at Lords Report stage included: a debate on forest risk commodities, which was approved on a vote; a proposal for a number of amendments relating to liability of PSPs for fraudulent...
Lords complete first day of FSM Bill Report stage
During the first day of Report stage in the House of Lords on the FSMB, the sessions debated key matters including: amendments in relation to the revocation of retained EU law to require meaningful Parliamentary...
Treasury Committee publishes exchange of letters with FCA
The Treasury Committee has published its request to FCA to provide it with information on key elements of its regulation following Nikhil Rathi’s appearance before it in early March, and FCA’s response. The...
FCA speaks on green mortgages
David Geale has spoken on FCA’s view of green mortgages. He said that every part of the housing chain has a role to play, and that lenders are risking missing their decarbonisation targets if they do not evolve...
BoE speech: climate action: approaching a tipping point?
Sarah Breeden, BoE Executive Director of Financial Stability, Strategy and Risk, has delivered a speech emphasizing the role governments, businesses, finance and central banks play in the transition towards climate...
FCA to lead GFIN Greenwashing TechSprint
FCA is inviting all UK firms interested in participating in the GFIN’s first ever greenwashing TechSprint to apply for it. FCA is leading the initiative involving 13 regulators and 80 international organisations...
FCA publishes Business Plan
FCA has published its Business Plan for 2023/24. It plans to accelerate its work in 4 areas: putting consumers’ needs first; preparing financial services for the future; strengthening the UK’s position in...
Government updates green finance strategy
The Government has published its promised updated Green Finance Strategy, updating the previous 2019 strategy. It aims to reinforce and expand the UK’s position as a world leader on green finance and investment...
Government consults on ESG rating providers regulation
Treasury is consulting on a future regulatory regime for ESG ratings providers. The consultation follows the announcement as part of the Edinburgh reforms that Treasury wants to ensure improved transparency and good...
FCA updates on SDR and labels consultation
FCA’s consultation on SDR and investment labels closed on 25 January 2023. It received around 240 responses, which were largely supportive. FCA intends to publish its Policy Statement during Q3. It notes that it...
Lords Committee finishes FSM Bill debate
The tenth and final sitting in the House of Lords Grand Committee on the FSM Bill took place on 23 March. The discussion moved to: adding new regulated activities in relation to climate and nature offsets, tabled by...
FSM Bill 9th Grand Committee session
The 9th Lords Grand Committee session on the FSM Bill took place on 21 March. Topics debated were: the proposal to limit the powers of PRA to prevent a matching adjustment being applied to a portfolio of high risk or...
FCA updates on Climate Financial Risk Forum
The Climate Financial Risk Forum, established in 2019, is currently nearing the end of its third session, which started last April. It has published a third round of guides to help the financial sector develop its...
FCA requires improvements on ESG benchmarks
The FCA has published its letter to administrators outlining where improvements are needed in ESG benchmarks. The FCA had previously highlighted the risk of poor disclosures for ESG benchmarks within its September 2022...
Treasury Committee writes to FCA on greenwashing
The Treasury Committee has described FCA’s proposals on sustainability disclosures intended to prevent investment funds from greenwashing as “lopsided”. It has written to FCA asking it to conduct a...
FSM Bill Committee day 7
On the seventh day of debate in the Lords’ Grand Committee, the Committee: continued its debate on climate issues – including on PRA risk weightings and solvency capital requirements, and a ban on regulated...
House of Lords updates on FSM Bill
Ahead of the seventh day of debate on the FSM Bill in the Grand Committee, the House of Lords has published: a new list of amendments; a letter promised by Baroness Penn to all members on matters raised at the second...
Sixth day of FSMB debate in Lords’ Committee
The Committee stage in the Lords’ has completed its sixth day of debate on the FSM Bill. The Committee spent 2.5 hours debating a set of proposals around the creation of an office for Financial Regulatory...
FCA faces judicial review over climate statements in approved prospectus
ClientEarth has announced the filing of an application for judicial review of FCA’s decision to approve a prospectus which it alleges failed properly to describe climate-related risks faced by the company. It says...
Green Finance Institute calls for single taxonomy
The Green Finance Institute is concerned that there are now over 30 taxonomies either finalised or under discussion, and that this “regulatory proliferation” is undermining efforts to promote cross-border...
UN updates principles for responsible banking
The UN Environment Programme has updated its Responsible Banking principles aimed at strengthening climate ambition. At a meeting last year, signatories decided the Principles’ climate ambition should be...
FCA seeks views on sustainability changes in firm governance
FCA has published a discussion paper looking at how it can best support the role of the financial sector in the transition to net zero and more broadly to a sustainable future. While the paper will be of interest to all...
FSMB 4th session in Grand Committee
The 4th sitting of the Grand Committee on the FSM Bill took place on 6 February. The Committee discussed: financial inclusion, both as a general principle and in terms of the reality of retail investors being excluded...
Treasury consults on crypto regulation
Treasury has published its long-awaited consultation on its plans to regulate cryptoasset activities in the UK. The consultation, which also includes a call for evidence and is accompanied by Treasury’s response...
Sub-Committee publishes regulatory correspondence
The Treasury Sub-Committee on financial services regulations has published correspondence it has had with regulators on: sustainable investments: FCA has informed it that it thinks one third of funds that currently...
FSM Bill Grand Committee stage starts
The first day of the Lords Grand Committee hearing on the FSM Bill took place on 25 January. There are now 6 dates scheduled in total, with sittings taking place now on 30 January, then 1, 6, 8 and 20 February. 195...
Andrew Griffith updates on Green Taxonomy
Andrew Griffith has confirmed a statement by Baroness Penn confirming that the Government will not make secondary legislation under the Taxonomy Regulations this year, and will update further on its plans as part of its...
FCA announces ESG Advisory Committee to its Board
FCA has announced a new advisory committee to its Board which will focus on supporting FCA with its ESG-related responsibilities. This is intended to align with the UK’s commitment to achieving a net zero economy...
Nicola Radford“Edinburgh” reforms highlight ring-fencing, CCA and post-Brexit changes
The Chancellor has announced a set of so called “Edinburgh reforms” to the financial services regulatory framework. At an industry roundtable, he will set out plans to repeal and replace “hundreds of...
FSM Bill – Lords dates announced
The FSM Bill as amended after its passage through the Commons has now had its first (routine) reading in the Lords. The Lords’ second reading has been set for 10 January 2023.
EIOPA publishes discussion paper on assessing insurers’ sustainability
EIOPA has published a Discussion Paper (DP) on assessing the prudential treatment of insurers’ sustainable assets and activities. Given that insurance underwriting and investment activities can be profoundly...
FCA to develop Code of Conduct for ESG data and ratings providers
FCA has announced that it will be setting up a group to develop a voluntary Code of Conduct for Environmental Social and Governance (“ESG“) data and ratings providers. This decision has arisen out of...
Final day of FSMB debate published
In the morning and afternoon of the final day of the Public Bills Committee debate on the FSM Bill, the remaining tabled new clauses were discussed: that the Chair of the PSR should be a member of the FCA board: this...
FSMB debate discusses crypto, net zero and regulatory independence
The debate on the FSM Bill resumed on 27 October. The Committee discussed, in the morning and afternoon sessions: Clause 21: the proposals for regulating stablecoins. The main question came from Tulip Siddiq who queried...