Emma RadmoreThe 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;...
Category - sustainable finance
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...
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...
Lucy HadrillEEA 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...
Laura WilesFSM 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...
FCA consults on anti-greenwashing rules
FCA is consulting on new rules to tackle greenwashing. Following its commitment in its ESG strategy and business plan, FCA is now addressing the concerns that the increasing exaggerated, misleading or unsubstantiated...
Emma RadmorePRA Dear CEO letter on climate related risks
PRA has written to PRA regulated firms with a summary of capabilities PRA expects them to have to manage climate-related financial risks. The letter reminds firms that PRA expected them to have fully embedded their...
FCA sets up ESG advisory committee
FCA is setting up a new advisory committee to its board to help on ESG issues, and is looking for a small number of external experts to join it. It is looking for interested parties who have in depth knowledge of ESG...
TheCityUK publishes manifesto for next PM
TheCityUK has set out 8 areas where the industry can work with the next Prime Minister, not least: delivering n the FSM Bill as soon as possible and reforming Solvency II creating tax incentives to accelerate financing...
GFANZ consults on net-zero portfolio guidance
The Glasgow Financial Alliance for Net Zero has published for consultation the GFANZ Portfolio Alignment Measurement Report to give additional guidance for financial institutions on implementing and selecting portfolio...
Climate-related disclosures improve but could still be better
FRC and FCA have published two reports which found that premium listed companies have made significant steps forward in the quality of climate-related information provided in their financial reports, but further...
Harshil PatelFCA’s CEO speaks on how the UK will regulate for the future
Nikhil Rathi, Chief Executive of the FCA, gave a speech on how it intends to regulate financial services for the future. A different regulator? He stressed that the FCA was: redesigning its operational platform to...
FSB reports on climate change roadmap
FSB has published its first annual progress report in the roadmap for addressing financial risks from climate change. FSB reported that good progress had been made against all four blocks of the roadmap: Firm-level...
European Parliament proposes new online credit suitability rules
MEPs have proposed legislation designed to protect consumers online from credit card debt, overdrafts and loans that are unsuitable for their financial situation. The proposed new rules would require that: consumers are...
ESMA announces consultation on MiFID II product governance guidelines
ESMA has announced a consultation on reviewed MiFID II product governance guidelines following the outcome of its 2021 common supervisory action (CSA) on the same theme. The results of the CSA revealed that: firms...
BoE provides update on risks from climate change
Anil Kashyap, a member of BoE’s Financial Policy Committee, has delivered a speech about the BoE’s work to ensure UK banks and insurers understand the risks from climate change. He discussed the following...
FCA plans to consult on sustainability disclosure requirements in autumn 2022
In response to growing consumer demand, firms are providing an increasingly diverse range of products that target various sustainability objectives, themes or characteristics. FCA acknowledges that there is also a risk...
ESMA provides guidance on sustainability risks
On 31 May 2021, ESMA published a supervisory briefing setting out guidance on the integration of sustainability risks in the area of asset management. The guidance is aimed at national competent authorities (NCAs) to...
FCA talks of a “digital regulator”
Jessica Rusu, FCA’s Chief Data, Information and Intelligence Officer, has spoken on how FCA is building its digital regulatory future. Its work will focus on fostering innovation, being intelligence led and...
PRA issues discussion paper on supporting liquid asset usability
PRA has today issued a discussion paper on supporting liquid asset usability. In response to the global financial crisis 2007/2008, banks were required to have a large enough stock of HQLA to meet their payment...
ESMA addresses asset management industry on sustainable finance and systemic risk
On 24 March 2022, Natasha Cazenave, Executive Director of the European Securities and Markets Authority (ESMA), delivered her keynote speech to the participants of the ICI Investment Management Conference 2022. In her...
FCA updates on Green FinTech Challenge 2021
FCA has accepted 10 firms into its Green FinTech Challenge 2021 which aims to enable the FCA to take a more active role in driving innovation in products and services that will aid the transition to a net-zero economy...
Emma BondFSB reports on financial stability risks in cryptoasset markets
The FSB has published a report assessing the risks to financial stability from cryptoassets. The report examines the developments and associated vulnerabilities relating to cryptoasset markets which it considers could...
ESMA Sustainable Finance Roadmap 2022-2024
ESMA has published a roadmap setting out three priorities for its sustainable finance work in 2022-24: Tackling greenwashing and promoting transparency; Building NCAs’ and ESMA’s capacities in the sustainable finance...
FCA speaks on capital market enhancement
Sarah Pritchard has spoken on FCA’s role and priorities in enhancing the UK’s capital markets. She focused on FCA’s transformation plan and how this would affect the way it regulates. It has welcomed...
All-Party Parliamentary Group on Blockchain publishes 2022/23 programme
The All-Party Parliamentary Group (AAPG) on Blockchain has published its 2022/23 work programme entitled ‘ensuring industry and society benefit from the full potential of blockchain‘. The AAPG’s three...
ECB comments on European Parliament’s Banking Union Annual Report
The European Central Bank (ECB) Banking Supervision has published its comments on the input provided by the European Parliament as part of its “Resolution on Banking Union – Annual Report 2022”. The...
EESC publishes opinion on Commission’s Sustainable Finance Package
The European Economic and Social Committee (EESC) has published its opinion on the European Commission’s Sustainable Finance Package. The package consists of: the Communication from the Commission to the European...
FCA updates on rule changes
FCA’s latest Handbook Notice confirms, among other things: changes to SUP to clarify what FCA expects to see reported on form FIN-A changes to LIBOR rules (previously reported in FIN) and changes to the value...
UK-US Financial Regulatory Working group holds fifth meeting
The fifth meeting of the UK-US Financial Regulatory Working group was held on 15 December 2021 and focussed on the following 7 themes: international and bilateral cooperation; sustainable finance; crypto-assets and...
Basel Committee consults on principles for climate-related financial risks
The Basel Committee on Banking Supervision is consulting on principles for the effective management and supervision of climate-related financial risks. The consultation, which follows a series of analytical reports...
FCA updates on ESG priorities and publishes SDR discussion paper
The FCA has updated its website to include a page setting out its environmental, social and governance (ESG) strategy. The refreshed ESG strategy is based on five core themes: transparency, trust, tools, transition and...
FCA, PRA, TPR and FRC publish Climate Change Adaptation Reports
The FCA, PRA, TPR and FRC have issued a joint statement regarding their publication of Climate Change Adaptation Reports. The statement emphasises the regulators’ focus on proactively managing both climate-related...
EU Banking Package 2021
The European Commission has today adopted a review of the Capital Requirements Regulation (CRR) and the Capital Requirements Directive (CRD) to ensure that EU banks become more resilient to potential future economic...
Climate financial risk forum publishes guides on managing climate related risks
The Climate Financial Risk Forum (CFRF), which was established in 2019 and is chaired jointly by the PRA and FCA, has published its second set of guides (the ‘Session 2 guides’) to assist financial firms in...
Chancellor publishes green financing roadmap
The Chancellor has published ‘Greening Finance: A Roadmap to Sustainable Investing‘. The document lays out the government’s ambition to align the financial system with the UK’s net-zero...
UNEPFI publishes collective progress report on principles for responsible banking
The UN Environmental Programme Finance Initiative (UNEPFI) has published a collective progress report providing an update on the progress made by more than 200 signatories in implementing the Principles for Responsible...
EU – US Joint Financial Regulatory Forum updates on initiatives
EU and US participants in the EU – US Joint Financial Regulatory Forum met virtually at the end of September as part of their ongoing financial regulatory dialogue. The participants included, amongst others: the...
IAIS reports on first quantitative study on climate change impacts on insurers’ investments
The International Association of Insurance Supervisors (IAIS) has published the 2021 special topic edition of its Global Insurance Market Report (GIMAR). As a first global quantitative study, the report “The...
ECA calls for more consistent action to redirect finance towards sustainable investment
The European Court of Auditors (ECA) has published a Special Report calling for the Commission to take more consistent action in the redirection of finance towards sustainable investment. In particular, the Report...
Banks benefit from early adoption of green policies, says EBA
The BEA has published the results of its economy-wide stress test, which tested the impact of climate change on over 4 million firms worldwide and 1,600 euro area banks. The findings show that: firms and banks are to be...