PIMFA
Latest News
June 2026
- Simplifying Climate Disclosure requirements for Investment Products
As part of the June Quarterly Consultation (CP26/17), the FCA published proposals to simplify climate disclosure requirements for investment products. The proposals form part of the FCA’s wider work to streamline sustainability reporting requirements for asset managers and FCA-regulated asset owners. The changes aim to give investors clearer insight into how climate risks – such as floods, storms and other extreme weather events – could affect investment performance, while reducing unnecessary costs to firms. Under the proposals:
- Retail investors would receive relevant information on how material climate risks could affect a product’s financial performance
- Institutional clients would be able to request key emissions data from firms, but this would no longer need to be published in full reports.
The proposals complement the FCA’s Sustainability Disclosure Requirements for asset managers, which aim to help retail investors navigate the market for sustainable investment products and reduce greenwashing. TCFD product reporting was introduced in 2021 as part of the UK’s approach to climate disclosures.
The consultation is open until 13 July 2026. The FCA aims to finalise and implement the rule change in the autumn. PIMFA Sustainable Finance Working Group will meet to discuss the proposals.
If you are not a member of the Working Group and would like to provide your views and help shape PIMFA response, please email Maja Erceg.
April 2026
- PIMFA responds to the FCA CP25/34: ESG ratings: Proposed Approach to Regulation
PIMFA has responded to the FCA consultation CP25/34: ESG ratings: proposed approach to regulation, on rules to improve transparency and trust in the ESG ratings market.
While broadly agreeing with the proposals and supporting the FCA’s intention to make ESG ratings more transparent and reliable, we also emphasised the need to ensure that information on ESG ratings is provided in a concise, user‑friendly, Consumer Duty‑appropriate format.
As many of our members will need to rely on their own expertise to assess methodologies when conducting due diligence on which rating provider to select, simplicity and clarity in how this information is presented becomes essential.
We also note that the cost–benefit balance for smaller ESG providers may be challenging, and if compliance costs become too high, smaller firms may be pushed out or may choose to move into other parts of the market.
Many of these smaller firms possess valuable niche expertise, and it is important that the FCA offers support during the gateway authorisation process to help them navigate regulatory expectations.
Please read the response here.
- 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
May 2026
- Financing Climate Solutions: Exploring findings from the Transition Finance Pilot
The FCA published its findings from the Transition Finance Pilot examining barriers to scaling finance for climate solutions.
The Transition Finance Pilot was a market engagement exercise led by the FCA and supported by the Prudential Regulation Authority (PRA) and the Green Finance Institute (GFI). Over several months, the FCA engaged with more than 45 market participants across 2 main categories: capital providers and climate solutions companies and project developers. The FCA identified 3 main challenges:
- Some climate solutions struggle to reach a commercial maturity sufficient to attract private capital.
- Capital is not always well-matched to opportunity, despite strong appetite.
- Information and capacity gaps create frictions.
The FCA will continue to advance its broader sustainable finance work to strengthen market integrity, transparency and trust, including supporting the development of industry-led transition metrics through the Climate Financial Risk Forum. The regulator is also exploring how its regulatory framework can better support small and medium-sized enterprise (SME) access to finance.
- FCA invites ESG rating providers to join a voluntary reporting pilot
The FCA is inviting ESG rating providers to join a voluntary reporting pilot to inform future regulatory reporting once the regime is live.
The aim is to avoid unnecessary reporting burden for firms over time. The pilot aims to help the FCA assess whether the proposed metrics for ESG ratings reporting are clear, feasible, proportionate across different business models, and useful for supervisory purposes.
Participants will have a direct opportunity to inform the design of the future reporting framework and regulatory reporting requirements. Based on feedback, the FCA may revise the metrics for the eventual reporting regime. The pilot is open to all ESG rating providers who expect to be in scope of UK regulation.
Firms can register their interest by 13 May 2026 here.
