FCA and PRA hosted second meeting of the Climate Financial Risk Forum (CFRF) in July 2019. At the meeting, the working group chairs presented the draft plans and progress to date, with CFRF members noting the importance of considering how outputs draw on international best practice; how to ensure that outputs are suitable for firms of different types, sizes, and complexity; and how to ensure coordination between the working groups. The meeting also discussed the form of the outputs, the timeline for publishing these outputs, and ways to get wider industry input into the process. It was agreed that the CFRF will aim to publish these outputs in early 2020.
The next CFRF meeting will take place in the fourth quarter of 2019. The objective of CFRF is to build capacity and share best practices across financial regulators and industry to advance financial sector responses to the financial risks from climate change. It brings together senior representatives from across the financial sector, including banks, insurers, and asset managers. The forum is chaired by Sarah Breeden (Executive Director of International Banks Supervision, PRA) and Christopher Woolard (Executive Director of Strategy and Competition, FCA). Since its inception in March 2019, CFRF has set up four technical working groups on disclosure, scenario analysis, risk management, and innovation. Each working group is chaired by a CFRF member and supported by an external secretariat. Each working group has planned the approach they propose to take and the outputs they will deliver in terms of practical guidance and best-practice material.
Related Link: Press Release
Keywords: Europe, UK, Banking, Insurance, Securities, Climate Change Risks, Climate Financial Risk Forum, CFRF, ESG, FCA, PRA
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EBA issued a statement reminding financial institutions that the transition period between EU and UK will expire on December 31, 2020; this will end the possibility for the UK-based financial institutions to offer financial services to EU customers on a cross-border basis via passporting.
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