On 2 October 2023, the European Securities and Markets Authority (ESMA) published a study on environmental, social and governance (ESG) names and claims in the EU funds industry. This study contributes to ESMA’s on-going monitoring efforts in the area of greenwashing risks, in particular in the investment management sector and supports on-going regulatory efforts regarding … Continue Reading
On 28 September 2023, the European Supervisory Authorities (ESAs) published their second joint report on the extent of voluntary disclosure of principal adverse impacts (PAI) under the Sustainable Finance Disclosure Regulation (SFDR). Like the approach taken for the first report in 2022, the ESAs launched a survey of Member State competent authorities to assess the … Continue Reading
On 27 September 2023, the European Systemic Risk Board (ESRB) published advice on the prudential treatment of environmental and social risks. The advice highlights the specificity of risks related to climate change, which can be expected to become an important driver of broader environmental and social risks, and the challenges of tackling such risks in … Continue Reading
We have published our latest ESG updater, tracking regulatory developments in the ESG space over the last month. Should you wish to receive the updater please contact Haney Saadah. For further updates on regulatory developments in the ESG space please visit our Financial Services Regulatory Developments in ESG hub.… Continue Reading
On 25 September 2023, the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) published consultations setting out their proposals to introduce a new regulatory framework on diversity and inclusion (D&I) in the financial sector. The FCA’s consultation paper, CP23/20, is on D&I in the financial sector – ‘working together to drive change’, and … Continue Reading
On 22 September 2023, the United Nations Environment Programme (UNEP) published the second biennial progress report on implementation of the UN Principles for responsible banking. The report highlights the key achievements of member banks in integrating sustainability considerations such as climate change mitigation into their strategies, transforming governance structures, understanding their impacts better, setting targets … Continue Reading
On 20 September 2023, the Joint Money Laundering Steering Group (JMLSG) received HM Treasury ministerial approval of revisions to Part II Sector 22 (Cryptoasset providers and custodian wallet providers) of its Guidance. This also includes the new Sector 22 Annex 1 relating to cryptoasset transfers (Travel Rule) and related updates to Sector 22.… Continue Reading
On 19 September 2023, the Glasgow Financial Alliance for Net Zero (GFANZ) launched a consultation which outlines preliminary considerations regarding defining transition finance and potential for decarbonisation contribution methodologies. In 2022, GFANZ identified four strategies necessary for financing a whole economy transition to net zero, which collectively comprise ‘transition finance’. These finance or enable the … Continue Reading
On 19 September 2023, HM Treasury published the draft Greenhouse Gas Emissions Trading Scheme (Amendment) (No.2) Order 2023 (the draft SI). The draft SI amends the Greenhouse Gas Emissions Trading Scheme Order 2020 (also known as the UK ETS Order), Commission Delegated Regulation (EU) 2019/331, Commission Implementing Regulation (EU) 2019/1842 and the Greenhouse Gas Emissions … Continue Reading
On 19 September 2023, the Taskforce on Nature-related Financial Disclosures (TNFD) published its recommendations. The TNFD was launched in 2021. It is a global, market-led, science-based, and government-supported initiative with the mission to develop and deliver a risk management and disclosure framework for organisations to report and act on evolving nature-related issues. The aim of … Continue Reading
On 14 September 2023, the European Commission announced that it has launched a targeted consultation and a public consultation to seek feedback on the Sustainable Finance Disclosure Regulation (SFDR). The SFDR, which has been in application since March 2021, sets out how financial intermediaries, such as asset managers, have to communicate sustainability information to investors. … Continue Reading
On 8 September 2023, the Green Technical Advisory Group (GTAG) published the following two reports: The objective of this paper is twofold. Firstly, it provides the GTAG’s recommendations on how activities previously considered environmentally sustainable, i.e., ‘green’, are affected when the UK Green Taxonomy is implemented. Secondly, it covers how taxonomy-aligned activities, products and investments … Continue Reading
On 7 September 2023, the FCA published its response to the International Sustainability Standards Board’s (ISSB) request for information in its consultation on agenda priorities. The ISSB issued the consultation in May 2023, seeking feedback on its priorities for its next two-year work plan following the publication of the first two standards (IFRS S1 and … Continue Reading
On 7 September 2023, the Network for Greening the Financial System (NGFS) published the beta version of its conceptual framework for nature-related financial risks to guide policies and action by central banks and financial supervisors. The framework creates a shared science-based understanding of, and common language for, nature-related financial risks to help central banks and … Continue Reading
On 6 September 2023, the European Central Bank (ECB) published Occasional Paper No 328 – The road to Paris: stress testing the transition towards a net-zero economy. The ECB states that this Occasional Paper contributes to the field of climate stress testing by introducing the following three key innovations: The results of this exercise demonstrate … Continue Reading
On 5 September 2023, the Financial Services Consumer Panel (FSCP) published a final report on financial services firms’ personal data use, in which it considers whether that use is leading to bias and detriment for consumers with protected characteristics. The report addresses the assumption that some groups of consumers are experiencing bias and detriment, related … Continue Reading
On 5 September 2023, the FCA published the terms of reference (ToRs) for its review of the treatment of domestic politically exposed persons (PEPs) by financial services firms. The review is being conducted in compliance with Section 78 of the Financial Services and Markets Act 2023 and follows a letter that the FCA sent to … Continue Reading
On 4 September 2023, the European Central Bank (ECB) published the keynote speech, given by Frank Elderson, Member of the ECB Executive Board and Vice-Chair of the ECB Supervisory Board, delivered at the ECB legal conference. The speech addressed the risks of climate and environment-related litigation for the banking sector. In his speech, Mr Elderson … Continue Reading
On 1 September 2023, the Green Technical Advisory Group (GTAG) published the following reports: The report provides advice on the benefits and implications of adapting the coverage of the UK Green Taxonomy to better reflect the needs of the UK economy, drawing on the experience of the EU and other jurisdictions. The GTAG provides advice … Continue Reading
On 31 August 2023, the Joint Money Laundering Steering Group (JMLSG) published final revisions to Sector 22 (crypto asset providers and custodian wallet providers) in Part II of its Guidance. This includes a new Annex I to Sector 22 relating to cryptoasset transfers. The new guidance relates to the provisions of the Money Laundering, Terrorist … Continue Reading
We have published our latest ESG updater, tracking regulatory developments in the ESG space over the last month. Should you wish to receive the updater please contact Haney Saadah. For further updates on regulatory developments in the ESG space please visit our Financial Services Regulatory Developments in ESG hub.… Continue Reading
On 10 August 2023, the FCA published Primary Market Bulletin 45. Primary Market Bulletin 45 focuses on the International Sustainability Standards Board’s (ISSB) publication on 26 June 2023 of its first 2 IFRS Sustainability Disclosure Standards (ISSB standards): The FCA welcomes the publication of the two standards which deliver, for the first time, a global … Continue Reading
On 2 August 2023, the Department for Business and Trade (DBT) issued guidance on the UK government’s framework to create UK Sustainability Disclosure Standards (UK SDS) by assessing and endorsing the global corporate reporting baseline of the IFRS Sustainability Disclosure Standards issued by the International Sustainability Standards Board (ISSB). The UK government is a strong … Continue Reading
On 1 August 2023, the Joint Money Laundering Steering Group (JMLSG) announced a revision to Part 1 Paragraph 5.3.89 of its guidance. The revision has been submitted to HM Treasury for Ministerial approval. Part 1 Paragraphs 5.3.85 to 5.3.91 cover customer due diligence – private individuals – mitigation of impersonation risk.… Continue Reading
