CP21/17: Enhancing climate-related disclosures by asset managers, life insurers and FCA-regulated pension providers

Open consultation: CP21/17
Q2 2021
Consultation closed

We consulted on proposals to introduce climate-related financial disclosure rules and guidance for asset managers, life insurers, and FCA-regulated pension providers.

Read CP 21/17 (PDF)

Why we consulted

High-quality information on how climate-related risks and opportunities are being managed will help clients and consumers make better informed decisions about their investments. 

This should, in turn, help to enhance competition in the interests of consumers, protect consumers from unsuitable products, and drive investment towards greener projects and activities.

Background to the CP 

In November 2020, the Government published a Roadmap towards mandatory climate-related disclosures across the UK economy by 2025, aligned with the recommendations of the Financial Stability Board’s Taskforce on Climate-related Financial Disclosures (TCFD).

We are playing our part in the delivery of this Roadmap.

We are proposing a climate-related financial disclosure regime for asset managers, life insurers and FCA-regulated pension providers consistent with the TCFD’s recommendations. Our proposals aim to increase transparency and enable clients and consumers to make considered choices, while remaining proportionate for firms.

The key elements of our proposals are:

  • Entity-level disclosures. Firms would be required to publish, annually, an entity-level TCFD report on how they take climate-related risks and opportunities into account in managing or administering investments on behalf of clients and consumers.
  • Product or portfolio-level disclosures. Firms would be required to produce, annually, a baseline set of consistent, comparable disclosures in respect of their products and portfolios, including a core set of metrics.

Who this applies to

Our proposals will directly affect: 

  • asset managers
  • life insurers (including pure insurers)
  • non-insurer FCA-regulated pension providers, including platform firms and Self-invested Personal Pension (SIPP) operators
  • FCA-regulated pension providers

Our CP will also be of interest to a wide range of stakeholders, including:

  • trustees, operators and managers of occupational pension schemes 
  • industry associations, trade bodies, civil society groups, industry experts and academics 
  • accountants, auditors and investment consultants 
  • other regulators and policy makers 
  • consumer groups

Addendum – 9 July 2021

We have made a small number of updates to the cost benefit analysis section in Annex 2.

The changes correct small errors in the summary of our estimated costs for asset managers (and in corresponding averages and text) to reflect the total costs in Tables 4 and 5.

Next steps

This consultation has now closed. We will publish feedback on responses and issue a Policy Statement once we have reviewed your comments.

Page updates

09/07/2021: Addendum added Updates in Annex 2.