The Financial Conduct Authority (FCA) has warned major ESG benchmark administrators of regulatory action due to the "potential for widespread failings" identified as part of a preliminary regulatory review.
A Dear CEO letter dated 20 March followed communications from September last year, regarding the FCA's "particular concerns" of "subjective" ESG benchmarks' methodologies and disclosures. These concerns then prompted the subsequent review. FCA director of infrastructure and exchanges Jon Relleen shared a warning to senior management to ensure they have strategies in place to address the risks identified or face enforcement action due to their current "poor" quality. The letter read: "This work assessed the quality of disclosures made by a sample of UK benchmark administrators. In ge...
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