In late November, the UK Financial Conduct Authority initiated the formation of a group to develop a code of conduct applicable to environmental, social and governance disclosures by data and ratings providers, pending consideration by the government of the FCA’s request to expand its regulatory oversight of ESG matters.
The group is led by The International Capital Market Association and the International Regulatory Strategy Group as Secretariat. Co-chairs of the group are major ratings organizations and stock exchanges. Its composition will include investors and rated entities as well. The FCA has called upon the Secretariat to develop best practices and a voluntary code of conduct consistent with international standards set in other jurisdictions such as Japan and the European Union.