The FCA emphasised the increasing prevalence of providers and the potential harm from lack of regulation in this area.
By Paul A. Davies, Nicola Higgs, Michael D. Green, and James Bee, and Anne Mainwaring
In June 2022, the UK’s Financial Conduct Authority (FCA) issued a Feedback Statement in response to a consultation paper on ESG integration in capital markets that it had initially issued in June 2021. The consultation sought views from stakeholders on certain issues in relation to both ESG-related debt instruments (e.g., green and social bonds) and the role of ESG data and ratings providers, topics the FCA identified as “active areas of industry debate”.