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EU Reaches Provisional Agreement on ESG Ratings Regulation

The European Parliament and the Council of the EU have made some significant changes to the European Commission’s proposal. Key Points: ..The agreed text includes important clarifications on the scope of the regime and...more

EU Consults on Plans for a New Regulatory Regime for ESG Ratings Providers

An evolving landscape of reforms in the ESG ratings sector continues to pose challenges to providers of ratings and scores. International momentum to regulate ESG ratings continues as the European Commission released a...more

FCA Seeks Improvements to ESG Benchmarks

The regulator is concerned that ESG-related disclosures are not meeting expectations. The FCA has published a Dear CEO letter sent to benchmark administrators on 20 March 2023, expressing concerns about the quality of...more

DP 23/1: FCA Publishes Discussion Paper on Sustainability-Related Governance, Incentives, and Competence

The discussion paper aims to encourage industry-wide dialogue on sustainability related-governance, incentives, and competence. On 10 February 2023, the FCA published DP23/1: Finance for positive sustainable change:...more

Federal Reserve Proposes Climate Risk Guidance for Large Financial Institutions

The guiding principles are similar to related proposals from other banking regulators, but will require further clarification through the comment process. On December 2, 2022, the Board of Governors of the Federal...more

FCA Proposes New Labelling and Disclosure Rules to Combat Greenwashing in the UK

The FCA hopes the proposals will protect consumer trust in ESG-related financial products and help consumers navigate the increasingly complex ESG-related financial market. On 25 October 2022, the UK’s Financial Conduct...more

ESMA Consults on ESG-Related Amendments to Its Suitability Guidelines

Proposed changes seek to reflect the integration of sustainability considerations into MiFID II. The European Securities and Markets Authority (ESMA) is consulting on updates to its Guidelines on the MiFID II suitability...more

ESG in 2022: 10 Things to Look Out For

Corporate reporting (including SEC developments), climate change,  energy transition, supply chain management, and the mitigation of ESG-related litigation risk are expected to be the leading ESG themes of this year. As...more

IOSCO Calls for Oversight of ESG Ratings and Data Product Providers

The association noted that regulators could provide market participants with much-needed additional trust in ESG ratings and data. On 23 November 2021, the International Organization of Securities Commissions (IOSCO)...more

FCA Launches Discussion on Sustainability Disclosure Requirements and Product Labels

The regulator is inviting views on potential criteria for classifying and labelling investment products, and on further entity- and product-level sustainability-related disclosures. On 3 November 2021, the FCA published...more

UK Government Releases Roadmap to Sustainable Investing

The roadmap introduces sustainability disclosure requirements for UK companies and reveals further developments in relation to a UK Green Taxonomy. On 18 October 2021, the UK government released a report titled “Greening...more

ESG Toolkit Expands for European PE

Green shoots emerge as PE firms consider new ways to incorporate ESG into dealmaking. Market sentiment and the increasing importance of environmental, social, and governance (ESG) to firms’ competitiveness across the...more

ESG in Asset Management: A Global Perspective - October 2021

The global asset management community has long been among the leaders in recognising the investment and risk management benefits of tracking the environmental, social, and governance (ESG) performance of the assets it invests...more

IOSCO Consults on Regulation of ESG Data and Ratings Providers

On 26 July 2021, the Board of the International Organization of Securities Commissions (IOSCO) published a consultation report (the Report) that proposes a set of recommendations to mitigate risks flowing from activities of...more

FCA Proposes New Climate-Related Disclosure Regime

The FCA is proposing a disclosure regime for asset managers, life insurers, and pension providers. On 22 June 2021, the FCA published a Consultation Paper (CP21/17) on introducing climate-related financial disclosure...more

Second FCA Consultation on New Prudential Regime for Investment Firms

Latest FCA consultation focuses on remuneration, risk management and governance, and liquidity requirements. Key Points: The consultation: ..Sets out the FCA’s proposals for the new remuneration rules for FCA...more

The MAR Review — ESMA’s Final Report

ESMA advises the European Commission to consider some, but not all, of ESMA’s original proposals — and gives guidance on pre-hedging and market soundings along the way. Key Points: ..Pre-hedging / front running: ESMA...more

European Commission Publishes Draft Delegated Regulations on ESG Disclosures in Benchmarks

The three draft delegated regulations set out sustainability criteria and ESG disclosure requirements for benchmarks provided in accordance with the EU Benchmarks Regulation. Key Points: ..The measures follow amendments...more

Private Bank Briefing: Issues Impacting the Private Bank Sector - March 2020

On 17 March 2020, the FCA published a new webpage providing information on its expectations of firms’ response to the coronavirus. It will update the webpage over the coming weeks and expects to adapt its guidance...more

FCA Calls on Firms to Develop a Purposeful Culture

The FCA’s latest paper on culture explores how firms can improve culture through a meaningful purpose. Key Points: ..The FCA explains how it expects firms to develop a more purposeful culture, and the benefits this can...more

FCA Warns Firms of Conduct Risk During LIBOR Transition

The FCA has set out guidance for firms on how to manage conduct risk arising from the transition away from LIBOR to alternative benchmarks. Key Points: ..The FCA has set out its expectations for firms, from a conduct...more

FCA Fires Warning Shot to Brokers in Wholesale Markets

Latest Dear CEO letter from the regulator includes strong criticism and warns that firms need to improve to meet regulatory expectations. Key Points: ..FCA supervisory work during the next two years will focus on four...more

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