UK Regulator to Develop Code of Conduct for ESG Data and Rating Providers

The Financial Conduct Authority (FCA), the UK's conduct regulator for financial services firms and financial markets, announced the formation of a working group to develop a code of conduct for producers of ESG data and ratings.

As investors increasingly integrate ESG concerns into the investment process, demand for ESG data, services, and ratings has skyrocketed, despite the fact that the activities and operations of suppliers are typically unregulated by markets and securities regulators.

The Financial Conduct Authority (FCA), the UK's conduct regulator for financial services firms and financial markets, announced the formation of a working group to develop a code of conduct for producers of ESG data and ratings.

As investors increasingly integrate ESG concerns into the investment process, demand for ESG data, services, and ratings has skyrocketed, despite the fact that the activities and operations of suppliers are typically unregulated by markets and securities regulators.