PIMFA
Latest News
April 2026
- Sustainability Reporting Requirements
Financial markets rely on high-quality and comparable sustainability disclosures to inform asset pricing and capital allocation. Financial institutions, including asset managers, banks, insurers and pension providers, also need reliable data on sustainability factors to build products that meet their clients’ and consumers’ needs. Reliable data also helps with their own investment and risk management processes.
In Q2 2026, the FCA plans to consult on streamlining product-level TCFD reporting requirements. This is part of the ongoing work to consider streamlining the sustainability reporting framework for asset managers and FCA-regulated asset owners. It also reflects the FCA priorities to support growth and be a smarter regulator.
More information can be found at the FCA multi-firm review
November 2025
- FCA Environmental, Social, Governance ratings: Proposed approach to regulation (CP 25/34)
The Financial Conduct Authority (FCA) has published proposals to ensure that environmental, social and governance (ESG) ratings are transparent, reliable and comparable. The proposals follow the decision by the government to bring ESG ratings within the FCA’s remit, supported by 95% of those who responded to its consultation. Introducing clear, proportionate rules for transparency and governance will help to build the market’s trust in ESG ratings and address concerns.
The proposals focus on 4 areas:
- Increased transparency – allowing easier comparisons for the benefit of both those who use ratings and those who are rated.
- Improved governance, systems and controls – to ensure clear decision-making, strong oversight and quality assurance.
- Identification and management of conflicts of interest.
- Setting clear expectations for stakeholder engagement and complaints handling.
The proposals draw on the existing voluntary industry code of conduct and International Organization of Securities Commissions (IOSCO) recommendations to support consistency and international competitiveness. The consultation is open until 31 March 2026. Final rules are expected in Q4 2026, with the new regime coming into effect from June 2028.
If you are not a member of PIMFA Sustainable Finance Working Group, and would like to get involved and help shape the PIMFA response to the consultation, please contact: Maja Erceg.
Maja Erceg
Senior Policy Adviser – EU and Government Affairs
March 2026
- Sustainability Disclosure Requirements labels: good and poor practice
The FCA has published examples of good and poor practice for using labels under the Sustainability Disclosure Requirements (SDR) regime.
The examples are set out for each of the four labels. Firms have been able to use sustainability labels under the SDR regime since July 2024. The examples published are based on what the FCA has seen through the fund authorisations process for updating pre-contractual disclosures and through the regulator’s engagement with industry stakeholders.
The FCA says that applications to update pre-contractual disclosures have improved, as firms have become more familiar with the requirements. However, it hasn’t always been clear whether or how firms meet the labelling requirements, or whether disclosures accurately reflect what the fund invests in.
Good disclosures are clear, concise, easy to read and understand. They avoid complex terms and duplication and explain those that are open to interpretation, use a consistent narrative and logical flow of information, only disclose information relevant to the fund, use the right label for the fund and meet the relevant requirements, accurately reflect what the product invests in.
October 2025
- FCA welcomes legislation to bring ESG ratings providers into regulation
The FCA has welcomed the government’s legislation to bring Environmental, Social and Governance (ESG) ratings providers into the regulator’s remit.
The legislation, which was broadly supported by the industry, will provide the FCA with the necessary powers to regulate ESG ratings providers – an important step towards ensuring that there are transparent, reliable and comparable ESG ratings. In parallel with the Government finalising its legislation, the FCA has been developing their regime for ESG ratings. Now that the legislation has been laid before Parliament, the regulator intends to consult on the proposed rules before the end of the year.
The proposals, informed by the International Organisation of Securities Commissions (IOSCO) recommendations, will focus on four key areas: transparency, governance, systems and controls, and conflicts of interest.
The FCA will also be producing guidance to help firms assess whether their activities will fall under regulation and require our authorisation.