FCA to regulate ESG ratings providers

This move was designed to improve trust and comparability in sustainability data used across the investment chain. The watchdog said ESG ratings now play a "critical role" in capital allocation and investment decisions but sit outside regulation. The FCA said the new framework aims to ensure ratings are "transparent, reliable and comparable". It will consult on proposed rules before the end of 2025, focusing on transparency, governance, systems and controls, and conflicts of interest. The regulator will also publish guidance to help firms determine whether their activities fall und...