On 6 November 2024, the Financial Conduct Authority (FCA) published a speech delivered by its chief operating officer, Emily Sheppard, at the UK Sustainable Investment and Finance Association Leadership Summit in London, entitled ‘All aboard: strong infrastructure for smooth journeys’.

The speech highlights that:

• The FCA’s objectives aim to underpin the growth of the economy and encourage investment required for UK and financial services to achieve net zero by 2050.
• The FCA plans to continue to engage with industry, balancing proportionate regulations more broadly while recognising and avoiding unnecessary regulatory pressures and costs on businesses.
• The expansion of the FCA to Leeds and Edinburgh is intended to enable it to attract new talent and better reflect the demographic of firms nationwide.

Ms Sheppard discusses topics including:

• Recent regulatory changes introduced by the FCA to encourage sustainable investment, including the Sustainability Disclosure Requirements and investment labels regime, and the anti-greenwashing rule guidance.
• The FCA’s involvement in wider initiatives such as the Government’s recently published Transition Finance Market Review and its Transition Plan Taskforce.
• The Government’s plans for the FCA to regulate ESG ratings providers.
• The FCA’s intention to consult on strengthening expectations for listed companies’ transition plan disclosures, with the aim of giving investors transparency on a business’ future alignment with net-zero goals.
• The recent Call for Input on the FCA’s review of its rules following the introduction of the Consumer Duty – Ms Sheppard notes that the FCA is current reviewing 172 responses to the Call for Input and plans to feed back next year, with the aim of addressing areas of duplication, confusion or over-prescription which create unnecessary costs for business while at the same time demonstrating that it is possible to pursue market growth through sustained consumer benefit.