PIMFA
Latest News
March 2025
- FCA publishes a Financial Services Consumer Panel response to HM Treasury UK Green Taxonomy Consultation
The response notes concerns about its potential complexity and the ability of consumers to easily understand and use it.
- Sustainability-related reporting requirements
TCFD-aligned reporting requirements currently apply to listed companies, asset managers and FCA-regulated asset owners. In 2025, the FCA intends to consult on changing requirements for listed companies to refer to new reporting standards developed by the International Sustainability Standards Board (ISSB) and Transition Plan Taskforce (TPT). This is subject to the Government finalising its endorsement of the ISSB standards.
January 2025
- Corrections and Clarificatory Amendments to the Sustainability Disclosure Requirements (SDR)
On 6 December 2024, the FCA published Quarterly Consultation Paper No 46 (CP24/26), proposing to make amendments to the Environmental, Social and Governance sourcebook. It also proposes to update certain guidance provisions in other related sourcebooks for the purposes of clarifying certain existing rules and giving proper effect to the policy proposals consulted upon in Consultation Paper 22/20 and finalised in Policy Statement 23/16.
We consider the SDR amendments to be mostly sensible given that they simply clarify the existing policy intentions. Our response focuses on sections relevant to our members in their role as distributors.
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BENEFITS OF ENVIRONMENTAL, SOCIAL, AND GOVERNANCE REGULATIon
- Will produce a common transparent way to compare environmental, social, and governance (ESG) Products
- Will reduce the risk of investors being misled by greenwashing
- Will allow investors to make a more informed decision on their financial investments and the impact that they will have on the environment
- Will improve investors decisions when addressing social governance
- Will help reduce the worlds carbon footprint
- Will allow investors to align their financial goals against their environmental objectives
February 2025
- FCA CP24/26: Corrections and Clarificatory Amendments to the Sustainability Disclosure Requirements (SDR)
In December 2024 the FCA consulted on amendments to the Environmental, Social and Governance (ESG) sourcebook and certain guidance provisions in other related sourcebooks for the purposes of clarifying certain existing rules and giving proper effect to the policy proposals consulted upon in CP22/20 and finalised in PS23/16.
The regulator has now finalised these changes in Handbook Notice No 127. The amendments aim to increase transparency of the sustainability goals and features of products and reduce the risk of harm from greenwashing. They also advance the consumer protection objective, providing transparency and clarity to investors who wish to invest in sustainable products, and the integrity objective, helping to provide structure to a complex market for sustainable investment products.
- PIMFA response to FRC Consultation on the Stewardship Code
In November 2024 the Financial Reporting Council (FRC) issued a consultation on updates to the UK Stewardship Code.
The consultation follows on from updates to the UK Stewardship Code set out in July 2024 and sets out proposals such as a revised and enhanced definition of stewardship and a streamlined reporting process separating policy and activity disclosures to reduce reporting burdens.
November 2024
- UK Green Taxonomy Consultation
On 14 November 2024 HM Treasury issued a consultation on a UK Green Taxonomy, with the purpose of supporting investment into activities aligned with sustainability goals, and mitigating greenwashing.
The consultation is seeking views on whether a UK Green Taxonomy would be additional and complementary to existing sustainable finance policies, including in supporting market participants to make sustainable investment decisions, and the specific market and regulatory use cases which facilitate this.
In addition to developing a clear understanding of the use cases, the government is also seeking feedback on how to maximise the usability of a UK Taxonomy, should respondents support taking one forward. This includes considering key design features that will impact the overall usability of a UK Taxonomy.
