Topic: FCA acts to help investors make more informed ESG investment decisions
Date: 03/11/2021
Overview: The FCA is committed to helping investors put environmental, social and governance (ESG) matters at the heart of their investment decisions.
Findings from the Financial Lives survey shows that 80% of respondents wanted their money to ‘do some good’, while also providing a financial return, 71% wanted to ‘invest in a way that is protecting the environment’ and 71% would not put their money into ‘investments which are unethical’.
If the financial sector is to respond effectively to this growing demand and help encourage positive change across the economy, consumers need high quality information and clear standards. They need to be able to trust firms to deliver on their promises. The FCA encourages stakeholders to engage with the Discussion Paper (Sustainability Disclosure Requirements and investment labels) so that it can design a disclosure and labelling system to achieve this.
Nikhil Rathi, Chief Executive of the FCA stated:
‘’It is vital that we innovate to support industry’s shift to a more sustainable future. That is why the FCA has been leading from the front. Developing consistent, trusted standards are a vital part of that, giving investors the confidence to put their money where it can deliver the most sustainable outcome. The strategy we have published today puts these standards front and centre, supported by supervision and enforcement where firms fail to meet them.’’
Topic: FCA reforms decision-making to tackle consumer harm
Date: 26/11/2021.
Overview: The FCA has reformed its decision-making process to ensure it can make faster and more effective decisions for consumers, markets, and firms. As part of the FCA more decisions will be taken by the FCA’s senior managers rather than by the Regulatory Decisions Committee (RDC). The new process will ensure decisions to prevent or stop consumer harm are taken more quickly. More contentious cases will continue to be reviewed by the RDC, which is a committee of the FCA’s Board that operates separately from the regulator. Its members are drawn from business, consumer, and financial services backgrounds.
- The FCA’s senior managers are now able to take decisions on the following:
- a firm’s authorisation or an individual’s approval
- action in straightforward cases to cancel a firm’s permissions and that action is contested
- starting civil proceedings, such as seeking an injunction
- starting criminal proceedings, such as a prosecution for insider dealing
- using the FCA’s powers to vary or limit a firm’s permissions
- using the FCA’s powers to impose requirements on a firm.
Emily Shepperd, Executive Director of Authorisations, said: ‘We are taking a fresh approach to tackling firms and individuals who do not meet the required standards. Our new streamlined decision-making process will allow us to be more assertive in stopping harm.’
The FCA will carry out a 6-month post-implementation review to assess the effectiveness of the reforms.
Link: https://www.fca.org.uk/news/press-releases/fca-reforms-decision-making-tackle-consumer-harm