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
Episode 56: Countdown to Treasury Clearing
With less than nine months to go until the first US Treasury clearing mandates come into force, BlackRock’s Tyler Wellensiek and BNY’s Nate Wuerffel discuss industry progress. Please view this page via Chrome to access the recording.
Response to Eurosystem Consultation on Appia
On April 22, ISDA responded to the Eurosystem consultation on the Appia roadmap. ISDA broadly supports the roadmap and its high level principles, while recommending that the principle on market access and integration should be expanded to explicitly address interoperability...
ISDA Responds to ESMA on PTRR Clearing Exemption
On April 20, ISDA submitted a response to the European Securities and Markets Authority (ESMA) consultation paper on a draft regulatory technical standard (RTS) for the post-trade risk reduction (PTRR) exemption from the derivatives clearing obligation under Article 4b of the...
Response on Competitiveness of EU Banking Sector
On April 17, ISDA responded to the European Commission’s (EC) targeted consultation on the competitiveness of the EU banking sector. The EU is aiming to bolster the ability of its financial markets and banking sector to grow, remain competitive and...