The UK’s Financial Conduct Authority (FCA) has introduced new regulatory rules bringing Environmental, Social and Governance (ESG) rating providers under its supervision for the first time. The framework aims to strengthen transparency, reliability and comparability in ESG assessments, helping investors make better-informed financial decisions. It introduces requirements covering governance, internal controls, conflict-of-interest management and stakeholder engagement.
Under the new framework, ESG rating providers operating in the UK must prepare for FCA authorisation, with applications opening on 24 June 2027. The regulatory regime will officially come into effect on 29 June 2028, requiring relevant providers to obtain FCA authorisation to operate. The move aims to enhance market confidence while promoting greater accountability and consistency across the sustainable finance sector.
Reference: ESG News