Legal & Regulatory News

  • 13 September 2022
    European Central Bank releases paper on the disclosure of climate change risk in credit ratings

    On the 13 September 2022, the European Central Bank (ECB) released a paper examining how credit risk agencies incorporate climate change risk in credit ratings, and how they disclose climate change risk to stakeholders. 

    The ECB developed an analytical framework to compare ratings agencies' differing definitions, methodologies, assessment models, data usage, and disclosure practices.

  • 13 September 2022
    European Parliament votes in favour of new rules for companies on limiting global deforestation

    On the 13 September 2022, the European Parliament voted in favour of a new law that would make it obligatory for companies to verify that certain goods sold in the EU have not been produced on deforested or degraded land anywhere in the world. The new law has been proposed following a study that found that between 1990 and 2020, the world has lost 420 million hectares of forest - an area that is larger than the entire European Union.

  • 07 September 2022
    NGFS publishes revised set of climate risk assessments

    On the 7 September 2022, the Network for Greening the Financial System (NGFS) published the third iteration of its climate scenarios for central banks and supervisors (the NGFS Scenarios).

  • 06 September 2022
    EU 2020 Biodiversity Strategy: EU Commission publishes Staff Working Document on evaluation of EU Biodiversity Strategy to 2020

    On the 6 September 2022, the European Commission published a Staff Working Document (the Working Document) evaluating the progress towards the targets set in the EU Biodiversity Strategy 2020 (the Strategy).  

    The Strategy provided a policy framework that was implemented between 2011-20, with the overall aim of halting the loss of biodiversity and ecosystem services in the EU.  The evaluation of the Strategy's effectiveness was made against the original targets, and using the EU's Better Regulation Guidelines.

     

  • 30 August 2022
    European Parliament briefing on green central banking

    In a briefing paper published on 30 August 2022, the European Parliamentary Research Service has explored the role of central banks, including the European Central Bank (ECB),  in the transition to net zero.  

    This briefing paper explores the actions which the ECB announced under its climate action plan and compares them to the actions taken by two of its central bank peers: the US Federal Reserve System and the Bank of England.

  • 24 August 2022
    FCA launches diversity, equality and inclusion innovation initiative

    On 24 August 2022, the UK Financial Conduct Authority (FCA) published an announcement regarding the launch of their new diversity, equality and inclusion (DEI) initiative. This is aimed at creating closer alignment between new DEI financial products and the FCA's work on improving financial inclusion for underserved or unrepresented consumers.

  • 23 August 2022
    FCA to establish new ESG advisory committee

    On 23 August 2022, the Financial Conduct Authority (FCA) announced that it will establish a new advisory committee (the Committee) to focus on ESG issues. The FCA also requested for interested stakeholders to express their interest in joining the Committee.

  • 22 August 2022
    IOSCO publishes report on protecting investors against fraud and greenwashing

    On the 22 August 2022, the Board of the International Organization of Securities Commissions (IOSCO) published a report titled, 'Retail Investor Education in the Context of Sustainable Finance Markets and Products' (the Report).

    The Report was commissioned in response to market investors increasingly seeking out sustainable investments and products with the aim of achieving greater financial returns and/or avoiding risks associated with various environmental, social and governance issues. IOSCO is seeking to ensure that the sustainability claims made about financial investments are accurate and that the integrity of the products are upheld.

  • 09 August 2022
    GFANZ consults on interim report on measuring portfolio alignment for financial institutions

    On 9 August 2022, the Glasgow Financial Alliance for Net Zero (the GFANZ) launched a public consultation on its draft report, "Measuring Portfolio Alignment: Enhancement, Convergence and Adoption".

    The draft report sets out additional guidance for financial institutions on implementing and selecting portfolio alignment metrics in relation to the goal of net zero. The GFANZ workstream on portfolio alignment measurement is intended to promote convergence on methodological best practices on how financial institutions measure their progress towards meeting net zero commitments.

  • 09 August 2022
    FCA releases Dear CEO Letter sent to alternative investment portfolio managers regarding main supervisory priorities, including the integrity of ESG labels

    On 9 August 2022, the UK Financial Conduct Authority (FCA) released a copy of a letter (the Dear CEO Letter) sent to all CEOs in its 'Alternatives' portfolio (i.e. FCA authorised firms that predominantly manage alternative investment vehicles (i.e., hedge funds or private equity funds) or manage and advise alternatives assets directly) reaffirming their supervisory priorities for the sector.