Featured Product

    FCA Consults on Improving Climate-Related Disclosures by Listed Firms

    March 06, 2020

    FCA published proposals (CP20/3, including a Technical Note) outlining the climate-related disclosure requirements for listed issuers and issuers with securities admitted to trading on regulated markets. FCA believes that the proposals will also be of interest to sponsors of listed companies, corporate finance and other advisers, accountants and auditors, consumer groups and individual consumers, industry groups, trade bodies and civil society groups, regulated firms, investors, policy makers and regulatory bodies, industry experts and commentators, and academics and think tanks. The consultation closes on June 05, 2020. FCA aims to publish a Policy Statement, along with the finalized rules and Technical Note, later in 2020.

    FCA is proposing to introduce a new rule for commercial companies with a UK premium listing, requiring them to state whether they comply with the recommendations of the FSB Taskforce on Climate-related Financial Disclosures (TCFD) and to explain any non-compliance. FCA will consider consulting on extending this rule to a wider scope of issuers. FCA is also consulting on the guidance, in the form of a Technical Note, on existing obligations set out in EU legislation and in its Handbook that may already require issuers to disclose information on climate-related and wider environmental, social, and governance (ESG) matters under certain circumstances. 

    The proposed Technical Note, which is presented in Appendix 2 to CP20/3, lists provisions in various regulations and indicates how these may be relevant to ESG matters. In each case, referencing the language in the provisions, FCA indicates where ESG matters may need to be taken into consideration. This Technical Note is the result of a 2018 consultation, during which stakeholders acknowledged that existing disclosure requirements require the disclosure of financially material climate-related risks. However, respondents cited a number of practical, methodological, and data-related difficulties in determining materiality. 

    The work of the Climate Financial Risk Forum—an industry group that FCA and BoE's PRA launched jointly in March 2019—will also help to build disclosure capabilities. The Forum will soon be publishing industry guidance, covering climate-related disclosures, risk management, scenario analysis, and innovation. These guidance materials are grounded in the TCFD recommendations and will complement the proposed new rule. FCA is also considering how best to enhance climate-related disclosures by regulated firms, including asset managers and life insurers, to ensure a coordinated approach. FCA is working closely with the government and other regulators, including through a Taskforce established by the Treasury under the Green Finance strategy of government.

     

    Related Links

    Keywords: Europe, UK, Banking, Insurance, Securities, CP20/3, Disclosure, Climate Change Risk, ESG, Sustainable Finance, TCFD Recommendations, FCA

    Related Articles
    News

    EBA Clarifies Use of COVID-19-Impacted Data for IRB Credit Risk Models

    The European Banking Authority (EBA) published four draft principles to support supervisory efforts in assessing the representativeness of COVID-19-impacted data for banks using the internal ratings based (IRB) credit risk models.

    June 21, 2022 WebPage Regulatory News
    News

    BIS Hub Updates Work Program for 2022, Announces New Projects

    The Bank for International Settlements (BIS) Innovation Hub updated its work program, announcing a set of projects across various centers.

    June 17, 2022 WebPage Regulatory News
    News

    US Senate Members Seek Details on SEC Proposed Climate Disclosure Rule

    Certain members of the U.S. Senate Committee on Banking, Housing, and Urban Affairs issued a letter to the Securities and Exchange Commission (SEC)

    June 16, 2022 WebPage Regulatory News
    News

    EIOPA Consults on Review of Securitization Framework in Solvency II

    The European Insurance and Occupational Pensions Authority (EIOPA) published a consultation paper on the advice on the review of the securitization prudential framework in Solvency II.

    June 16, 2022 WebPage Regulatory News
    News

    UK Authorities Issue Regulatory and Reporting Updates for Banks

    The Prudential Regulation Authority (PRA) issued a statement on PRA buffer adjustment while the Bank of England (BoE) published a notice on the statistical reporting requirements for banks.

    June 15, 2022 WebPage Regulatory News
    News

    BaFin Consults on Resolvability Requirements for Resolution Planning

    The Federal Financial Supervisory Authority of Germany (BaFin) proposed to amend the “Capital Investment Conduct And Organization Ordinance” and issued a draft circular on the minimum resolvability requirements for resolution planning.

    June 10, 2022 WebPage Regulatory News
    News

    EBA Consults on Certain Standards and Guidelines Under CRR and BRRD

    The European Banking Authority (EBA) proposed guidelines, for the resolution authorities, on the publication of the write-down and conversion and bail-in exchange mechanic, with the comment period ending on September 07, 2022.

    June 08, 2022 WebPage Regulatory News
    News

    OJK Publishes Regulatory Updates for Financial Sector Entities

    The Financial Services Authority of Indonesia (OJK) is strengthening cooperation with the Australian Prudential Regulation Authority (APRA) and the Japanese Financial Services Agency (JFSA)

    June 03, 2022 WebPage Regulatory News
    News

    EU Publishes Rules on DLT and Data Governance

    The European Parliament and the Council published Regulation 2022/868 on European data governance (Data Governance Act).

    June 03, 2022 WebPage Regulatory News
    News

    EBA Publishes Phase 2 of Reporting Framework 3.2

    The European Banking Authority (EBA) published phase 2 of its reporting framework 3.2. The technical package supports the implementation of the updated reporting framework by providing standard specifications

    June 03, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8267