The Financial Conduct Authority (FCA) is to establish a new advisory committee to work on ESG issues.
The regulator is looking for external ESG experts to join the committee which will meet for the first time in the fourth quarter of this year.
The advisory committee will meet quarterly to guide the FCA’s board to help the regulator execute its ESG-related responsibilities.
Objectives will including helping the regulator to meet the Government’s expectation that it plays a part in achieving a net zero economy by 2050, and considering how to advance and achieve ESG objectives.
The Committee will provide advice to the FCA board on:
- how it executes oversight of ESG issues relevant to the FCA both as a regulator and our own operations
- relevant emerging ESG topics or issues
- how the FCA should develop its ESG Strategy, in keeping with the organisation’s statutory objectives and regulatory principles.
The committee will include external ESG experts, a chairperson and secretariat support.
The FCA said it does not expect those currently employed by FCA regulated firms to be appointable to the committee.
Members will be appointed by the board in a personal capacity and will need to abide by a conflict of interest policy.
The FCA has asked those interested in joining the committee to contact the regulator by 16 September.
The FCA and The Treasury began work on ESG requirements for Financial Planners in the fourth quarter of last year.
The Treasury said it wants financial advisers to “take sustainability matters into account” when giving investment advice.
It added that it wants advisers to “understand investors’ sustainability preferences to ensure suitability of advice” in a policy paper released last night.
The 'Greening Finance' policy paper did not set out any detail on the potential sustainability rules but added that its proposals would be subject to consultation and cost benefit analysis.
