The Financial Conduct Authority (FCA) has published final rules bringing providers of environmental, social and governance (ESG) ratings and assessments into UK regulation for the first time. The framework follows its earlier consultation and October 2025 legislation extending its remit to ESG ratings. It aims to improve the transparency, reliability and comparability of information used in investment and risk management decisions. The rules regulate how ratings are produced, governed and communicated, with requirements covering transparency, governance, systems and controls, and management of conflicts of interest. They also establish expectations for engagement with ratings users and rated entities. Requirements are proportionate to firms’ size and activities and informed by international standards, without prescribing a particular sustainability view or methodology. The regime takes effect on 29 June 2028, when firms providing ESG ratings in the UK will need FCA authorisation and the relevant permission unless exempt. Applications open from 24 June 2027, with staggered application periods. Firms should use the accompanying scope guidance to assess whether they are covered and begin preparing for authorisation.
UK FCA finalises ESG ratings rules with authorisation required from 29 June 2028
The UK Financial Conduct Authority has finalised its first regulatory regime for environmental, social and governance (ESG) rating providers. Rules cover transparency, governance, conflicts of interest and engagement with ratings users and rated entities, without prescribing a sustainability methodology. Providers will need authorisation and relevant permission from 29 June 2028 unless exempt, with applications opening from 24 June 2027.