On June 30, ISDA and the Association for Financial Markets in Europe (AFME) submitted a joint response to His Majesty’s Treasury (HMT) consultation on the future regulatory regime for environmental, social and governance (ESG) ratings providers. The associations support the introduction of regulation for ESG ratings providers – in particular, the need for greater transparency in methodologies, sufficient resources and expertise within providers, stronger governance and addressing conflicts of interest. The associations welcome the indication from the UK Financial Conduct Authority that its regulatory approach would take the main elements of the International Organization of Securities Commissions’ recommendations as a staring point for the rules.
The response also highlights areas of challenge, as well as overlaps that may arise in connection with the proposal to include ESG ratings providers within the regulated activities order. This includes potential overlaps with existing regulated activities, application of exclusions and exemptions, and transitional provisions. The associations make recommendations on the definition of ESG ratings, cross-border access and how the government should approach ESG data providers.
Documents (1) for ISDA Responds to HMT Consultation on ESG Ratings Providers
Latest
An Important Step Towards Efficient Reporting
Of all the problems that have hindered effective trade reporting in the derivatives market, one of the most difficult to resolve has been duplication. In the EU, both parties to a trade are mandated to submit the same information, while...
The ISDA Notices Hub: One Year On
In times of war, armed forces are often required to mobilize over large distances at short notice. The most dreaded response to the question of how they are to be transported is ‘by LPC’, meaning ‘leather personnel carrier’ – the...
ISDA Response to OSC Call for Feedback
On June 26, ISDA responded to the Ontario Securities Commission’s (OSC) consultation on facilitating access to its regulatory framework and reducing the burden for capital markets participants by publishing a machine-readable dataset of regulatory instruments. ISDA's comments are supportive of...
ISDA Comments on EP's MISP Draft Reports
On July 15, ISDA shared comments with policymakers in the European Union on the European Parliament’s (EP) draft reports by Member of the European Parliament (MEP) Markus Ferber and MEP Eero Heinäluoma on the Market Integration and Supervision Package (MISP)....