On 11 March 2025, the Financial Conduct Authority (FCA) published a statement setting out its position on its sustainability regulations and UK defence.

In the statement, the FCA emphasises that there is nothing in its rules, including those relating to sustainability, that prevents investment in or finance for defence companies. It explains that its sustainable finance rules, which apply to firms providing financial products and services as well as some listed companies, do not require financial institutions to treat defence companies differently because they are in the defence sector. 

The FCA notes that its sustainability-related rules have two aims: to ensure information about investments claiming to be sustainable can be trusted and readily understood, and to improve the quality of sustainability-related information in the market. These rules should not be confused with financial institutions’ own policies relating to the type of businesses they wish to support and their own appetite for risk. 

The statement also flags that it is up to individual lenders and investors whether they provide the capital defence companies need. The FCA reminds firms that some consumers will also want options to invest in line with their ethical values, so it is important they have the freedom to make choices about where they invest their money.