From 29 June 2028, firms providing environmental, social and governance (ESG) ratings in the UK will need FCA authorisation. Find out what you need to do now.
The new regime is intended to improve transparency and confidence in the market.
Unless an exclusion applies, firms providing ESG ratings in the UK will need FCA authorisation and the relevant permission.
Firms should consider whether any products or services you provide that include an assessment, score or opinion on ESG rating matters fall within the new regulated activity.
Firms must apply for authorisation in either of 2 periods that will open from 24 June 2027.
Our Policy Statement explains the final rules and the actions firms need to take to become authorised.
We have published perimeter guidance (PERG) within PS26/22. This seeks to help firms understand the regulatory perimeter, as set out in legislation, and when authorisation may be required.
What we expect firms to be doing now
We encourage firms to develop a clear and credible plan that shows:
- you have considered what the new regime will require of you
- how you will be ready
Not yet authorised
Firms that intend to apply for authorisation should:
- Review the new regulated activity of providing ESG ratings and determine whether you are in scope.
- Read the final rules[1] and carry out a gap analysis to identify where existing arrangements may need to be strengthened.
- Identify the legal entity that may need to apply for authorisation or a variation of permission.
- Assess the resources and costs associated with preparing for authorisation and ongoing compliance.
- Familiarise yourselves with the Threshold Conditions[2] and our expectations of applicants.
- Consider which individuals may need to perform Senior Management Functions under the Senior Managers and Certification Regime (SM&CR)[3]. Firms should also familiarise themselves with the proposals set out in CP26/37[4].
- Consider obtaining legal, compliance or regulatory advice to support your preparations, where appropriate.
Firms should begin assessing the changes you may need to make to meet our expectations, including for:
- transparency
- governance, systems and controls
- conflicts of interest
- stakeholder engagement and complaints handling
Already authorised
Firms that are already authorised under the Financial Services and Markets Act 2000 (FSMA) should consider how the addition of regulated ESG rating activities and associated requirements may affect your:
- permissions
- business model
- governance arrangements
- systems and controls
Apply early within your application period
We’ll have 2 application periods when firms can apply for authorisation, opening in 2027. These will be based on firms’ projected revenue from ESG rating activities.
We encourage firms to apply as early as possible within your application period.
This will give us enough time to assess your application before the new regime comes into force.
Application periods by revenue
We’re holding 2 application periods, based on your projected revenue from providing ESG ratings for 12 months after submitting your application.
- £500,000 or more: apply between 24 June to 29 July 2027.
- Less than £500,000: apply between 30 July to 31 August 2027.
Submitting an application does not guarantee authorisation.
Firms that apply late may not receive a decision before the new regime comes into force.
Next steps
Firms should begin to consider which period you should apply in, based on your projected revenue from ESG ratings activities.
You can also request a meeting via the Pre-Application Support Service (PASS)[5] from February 2027. This service offers an opportunity to discuss your plans and ask specific questions before submitting an application.
To help you prepare, read our information on how to apply for authorisation[6]. We’ll publish more specific information in January 2027.
We'll also continue to support firms seeking authorisation to provide ESG ratings.
This support will include 2 webinars:
- 7 December 2026: webinar on the Policy Statement and the new regulatory regime for ESG ratings. Register now[7].
- 26 January 2026: webinar to help firms understand the authorisations journey and pre-application support. (Registration opens soon.)
