At a glance
- ESG Today reported on Nov. 3, 2026 that the requirements bring ESG ratings providers under UK regulatory supervision for the first time.
- Providers must also give users advance notification of material methodology changes, which suggests a selector can expect notice before a rating produced by a revised methodology reaches a client report.
- Providers must publish their methodologies, objectives, coverage and rated universe, plus their data approach, limitations and engagement approach.
ESG ratings providers will need authorization from the Financial Conduct Authority to issue ratings in the UK from June 2028, after the regulator finalized rules on transparency, governance and conflicts of interest.
ESG Today reported on Nov. 3, 2026 that the requirements bring ESG ratings providers under UK regulatory supervision for the first time. They follow UK legislation finalized in October 2025 to regulate the sector under FCA supervision, which applies to UK-based providers and to foreign providers offering ESG ratings in the UK. The FCA published proposed rules in late 2025, and the authorization duty falls on firms providing ESG ratings in the UK from the June 2028 effective date.
Advisors who buy ESG ratings for fund screens, model portfolios or client reporting will be using providers that hold FCA authorization from June 2028. Providers must also give users advance notification of material methodology changes, which suggests a selector can expect notice before a rating produced by a revised methodology reaches a client report.
Providers must publish their methodologies, objectives, coverage and rated universe, plus their data approach, limitations and engagement approach. They must make additional disclosures to users, and to rated entities on request, about products and individual ratings. Rated entities also get advance notification of new ratings, and further detail on request.
The requirements extend to systems and controls, conflict-of-interest management, and engagement with users of ratings and with rated entities, as well as transparency and governance, according to ESG Today. Governance arrangements must be proportionate to a provider's size and complexity, and providers keep full operational responsibility for the ratings process, including outsourced functions.
The FCA said its approach is shaped by international standards, including recommendations from IOSCO, the international securities regulator standards setter, and draws on the ICMA Code of Conduct for ESG ratings and data products providers. The regulator said the rules aim to make ratings more transparent, reliable and comparable, supporting investors' decision-making and market confidence and enabling growth in sustainable finance.
Reported by the Policy & Disclosure desk from ESG Today. Published . Corrections