On 17 December 2021, the UK Financial Conduct Authority ("FCA") published two policy statements (PS21/23 and PS21/24) confirming final rules and guidance to promote better climate-related financial disclosures. The rules will come into force for some in-scope firms from 1 January 2022.
PS21/32 contains the final rules that will apply to issuers of standard listed shares or equity shares represented by certificates – these firms will be required to include a statement in their annual financial reports setting out whether their disclosures meet the recommendations of the Taskforce on Climate-related Disclosures ("TCFD"). Where no such statement is made, an explanation will need to be provided as to why the statement is not included.
PS21/24 contains the final rules applicable to FCA-authorised asset managers – this includes full-scope UK authorised alternative investment fund managers ("AIFMs"), UK portfolio managers and UK sub-threshold AIFMs. These firms will need to make firm-level disclosures relating to how they take climate-related risks and opportunities into account when managing their investments. They will also have to make product-level disclosures. These requirements will apply from 1 January 2022, but implementation will be phased such that they will apply initially to the largest firms and will come into effect for smaller firms one year later.
In-scope firms should review the final rules included in the FCA's policy statements and ensure that they are adequately prepared for compliance.
UK Financial Conduct Authority Publishes New Rules on Climate-Related Disclosures
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