ESG ratings providers will require Financial Conduct Authority authorisation from 29 June 2028 to operate in the UK, after the regulator published its final policy statement today (3 November).
According to the FCA, global spending on ESG ratings and data is estimated to have more than doubled between 2021 and 2025, but users find it difficult to understand how ratings are produced, compare different products or assess potential conflicts of interest. Its rules, therefore, are designed to improve transparency and reliability, strengthen accountability and give users greater confidence, while promoting competition and innovation. Under the rules, firms will need to apply baseline standards from the FCA Handbook to ESG ratings providers, such as Threshold Conditions, Principle...
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