New FCA rules bring ESG rating providers into UK regulation for the first time
By FCA
AI summary of the source article
The UK Financial Conduct Authority has introduced a new regulatory framework for ESG rating providers. In-scope firms must apply for authorisation starting 24 June 2027, with the regime taking effect on 29 June 2028.
Why it matters
The rules are designed to improve the transparency, reliability and comparability of ESG ratings, helping build confidence in the information investors rely on.
Key facts
- ESG rating providers operating in the UK must apply for FCA authorisation starting 24 June 2027.
- The new regulatory framework officially takes effect on 29 June 2028.
- The rules introduce requirements covering transparency, governance, systems and controls, conflicts of interest, and stakeholder engagement.
Source excerpt · FCA
New UK rules for environmental, social and governance (ESG) rating providers will raise standards in the market, helping investors to make better informed decisions. The new framework brings ESG rating providers into FCA regulation for the first time, covering a market that plays an important role in investment decisions. The rules are designed to improve the transparency, reliability and comparab…