PIMFA
Latest News
August 2025
- Climate Reporting Review
The FCA has set out the findings and next steps following their review into firms’ climate reporting. Overall, the FCA found that their rules have increased firms’ consideration of climate risks and supported their integration into firms’ decision-making. Firms were more transparent with their clients and consumers but encountered some challenges with the availability of data and consistent, well-developed methodologies.
The FCA has updated their sustainability reporting requirements webpage to clarify how firms in scope of both the Task Force on Climate-related Financial Disclosures (TCFD) and Sustainability Disclosure Requirements (SDR) rules can report efficiently under both regimes. The regulator is also considering how to streamline and enhance the sustainability reporting framework. The FCA wants to:
- Simplify disclosure requirements and ease unnecessary burdens on firms.
- Maintain good outcomes for clients and consumers and improve the decision-usefulness of reporting, building on the work of SDR to improve trust and reduce greenwashing.
Promote international alignment and help maintain the UK’s position as a global leader in sustainable finance.
May 2025
- FCA Financial Lives survey 2024
The FCA has published its Financial Lives 2024 survey. A total of 17,950 respondents completed the survey. Fieldwork for the survey took place between 5 February 2024 and 16 June 2024, with more (just under 45%) completing the survey in May 2024 than in any other month. Section 6 focuses on attitudes towards, and experiences of, responsible investments. The findings include – In 2024, 54% of those with any investments or a DC pension were interested in investing in responsible investments – down from 63% in 2022. 58% of adults with any investments or a DC pension were aware of responsible investments – not statistically different from 2020. Importantly, 76% of adults with any investments or a DC pension thought it important to be asked if they wish to invest responsibly when selecting a pension or receiving advice. For adults with any investments or a DC pension who had never chosen to invest responsibly, the main reason given for why they had not were that they felt they didn’t have enough money (22%) or didn’t know enough about it (21%).
- FCA CP24/8: Extending the SDR regime to Portfolio Management - update
The FCA has confirmed that, in light of feedback received to the Consultation Paper 24/8, it is not the right time to finalise rules on extending sustainability disclosure requirements (SDR) to portfolio management.
The regulator has reflected on the feedback received via written responses and stakeholder engagement, and has also taken into account wider regulatory work affecting portfolio managers. Overall, there is broad support for extending SDR to portfolio management, with most respondents agreeing this is an important step toward improving consumer outcomes. However, the FCA wants to take time to carefully consider the challenges and ensure that portfolio managers are positioned to implement the regime effectively before introducing requirements.
The FCA intends to prioritise the forthcoming multi-firm review into model portfolio services (as announced in the Asset Management & Alternatives portfolio letter). The review will focus more broadly on how firms are applying the Consumer Duty to provide confidence that investors are receiving good outcomes from model portfolio services.
The FCA reminds firms of their obligation to comply with the anti-greenwashing rule, which came into effect on 31 May 2024.
June 2025
- The UK Stewardship Code 2026
The Financial Reporting Council (FRC) has published the UK Stewardship Code 2026, an updated set of principles which offers a framework for reporting that demonstrates high quality stewardship to support economic growth and investment. The new Code takes effect from 1 January 2026 and aims to support long-term sustainable value creation while significantly reducing the reporting burden for signatories.
The UK Stewardship Code has established itself as a global benchmark for best practice in stewardship, driving transparency and accountability in the investment chain. It currently has nearly 300 signatories who represent around £50 trillion in assets under management (AUM).
Key features of the UK Stewardship Code 2026:
- Enhanced definition of stewardship: The updated definition focuses on the principle of stewardship as the creation of long-term sustainable value for clients and beneficiaries.
- Reduced reporting burden: The Code features fewer Principles and shorter ‘how to report’ prompts instead of detailed reporting expectations, helping to eliminate ‘box-ticking’ approaches to reporting against the principles. Early evidence suggests signatories may be able to reduce reporting volume by 20-30% while maintaining quality.
- Flexible reporting structure: Signatories can submit separate Policy and Context Disclosures and Activities and Outcomes Reports or combine them into a single document. The Policy and Context Disclosure will only need to be submitted once every four years.
- Targeted Principles: The Code now includes dedicated Principles for different types of signatories, including asset owners, asset managers, and for the first time, specific Principles for proxy advisors, investment consultants, and engagement service providers.
- New guidance: Optional guidance will provide useful tips and examples to support effective implementation, particularly for those managing non-equity asset classes.
To support signatories in adapting to the new Code, 2026 will serve as a transition year. During this period, no existing signatories will be removed from the signatory list following their 2026 application. This will allow current signatories to familiarise themselves with the new format and use it as a platform to explain their individual approach to stewardship.
