FCA to Regulate ESG Ratings Providers

FCA to regulate ESG ratings firms amid concerns over conflicts of interest

ESG ratings agencies will be regulated by the UK Financial Conduct Authority (FCA) after the regulator said it had come across a number of potential issues, with firms often unclear about how these ratings are devised. It also highlighted more serious conflicts of interest — including agencies charging companies for both ratings and consultancy services

FCA Releases New Proposed Rules to Regulate ESG Ratings Providers

The Financial Conduct Authority (FCA), the UK’s conduct regulator for financial services firms and financial markets, announced the publication of new proposed transparency, governance and conflict of interest management requirements for ESG ratings providers. The launch of the proposals follows the finalization of new legislation in October by the UK government to regulate ESG ratings providers, […]

FCA’s Initiative to Restore Trust in ESG Ratings

Exploring new standards for environmental, social, and governance evaluations. Highlights: FCA proposes new framework for ESG rating agencies. Focus on transparency and accountability in ratings. Initiative aims to enhance investor trust. New standards expected to reduce misinformation. The Financial Conduct Authority (FCA) is taking significant steps to rebuild trust in Environmental, Social, and Governance (ESG) ratings. By proposing a framew…

FCA to regulate ESG ratings providers amid transparency and conflict-of-interest concerns

The UK’s financial watchdog is preparing to bring Environmental, Social and Governance (ESG) ratings agencies under formal regulation for the first time, in what is being described as the most sweeping overhaul of sustainable finance rules in the country’s history. The Financial Conduct Authority (FCA) has launched a consultation setting out plans to police the rapidly expanding ESG ratings sector, which has grown into a $2.2bn (£1.6bn) global i…

ESG 3% underperformance, $43.9bln outflows usher defence exclusion rethink - Global Trading

A few years ago, Environmental, Social & Governance (ESG) investing was all the rage. Now, investors seem to have changed their views. European managers are rethinking exclusion policies as they have been particularly affected by underexposure to defence stocks, causing significant underperformance versus their non-ESG counterparts. According to Morningstar Sustainalytics, ESG funds generally underperformed and posted US$57.3 billion of worldwid…