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New FCA rules bring ESG rating providers into UK regulation
03 November 2026 UK
Image: vittaya/stock.adobe.com
New UK rules for environmental, social, and governance (ESG) rating providers will be brought into Financial Conduct Authority (FCA) regulation.
The new framework introduces requirements covering transparency, governance, systems and controls, the management of conflicts of interest, and engagements with users of ESG rating and rated entities.
For the first time, ESG rating providers are being brought into FCA regulation, a move the FCA says it is helping to build confidence in the information investors rely on.
The FCA reports the regime applies to firms or organisations providing ESG rating and assessments to ensure reliability across the market, and they have published guidance to aid firms to understand if they are in scope.
Laura Dawes, director of authorisations and sustainable finance at the FCA, says: “Trusted information is essential for well-functioning markets. These rules will help improve transparency and raise standards across the ESG ratings market while supporting competition, innovation, and growth.”
The FCA says firms that may be in scope should start prepping now, as ESG rating providers opening in the UK market will need to apply for FCA authorisation from 24 June 2027.
The new framework introduces requirements covering transparency, governance, systems and controls, the management of conflicts of interest, and engagements with users of ESG rating and rated entities.
For the first time, ESG rating providers are being brought into FCA regulation, a move the FCA says it is helping to build confidence in the information investors rely on.
The FCA reports the regime applies to firms or organisations providing ESG rating and assessments to ensure reliability across the market, and they have published guidance to aid firms to understand if they are in scope.
Laura Dawes, director of authorisations and sustainable finance at the FCA, says: “Trusted information is essential for well-functioning markets. These rules will help improve transparency and raise standards across the ESG ratings market while supporting competition, innovation, and growth.”
The FCA says firms that may be in scope should start prepping now, as ESG rating providers opening in the UK market will need to apply for FCA authorisation from 24 June 2027.
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