We have finalised rules to improve transparency and trust in the environmental, social and governance (ESG) ratings market.
From 29 June 2028, firms providing ESG ratings in the UK will need FCA authorisation and to have the relevant permission before carrying on that activity, unless an exclusion applies.
We’ve published rules and perimeter guidance (PERG) for the regulation of ESG rating providers, following legislation from HM Treasury to bring ESG ratings within our regulatory perimeter.
We want to:
Our approach is shaped by international standards, including recommendations from the International Organization of Securities Commissions (IOSCO).
The new regime requires ESG rating providers to comply with baseline FCA rules alongside tailored requirements to support trust in the market.
Our rules will be relevant to:
The policy statement may also be of interest to:
Firms that may be in scope should start preparing now.
Firms should:
We’ll provide support to help firms understand the framework, navigate the application process and prepare for the transition into regulation. This will include access to PASS ahead of implementation.
ESG rating providers operating in the UK market will need to apply for FCA authorisation. The authorisation gateway opens on 24 June 2027. We are staggering application periods and encourage firms to apply as early as possible within their window.
The new regime comes into effect on 29 June 2028.
For more information on our rules and authorisation process, join our ESG ratings webinars:
ESG ratings generally assess how companies or other entities, assets, or financial products perform against environmental, social and governance criteria. They are used by asset managers, lenders, benchmark administrators and others, to inform capital allocation decisions and manage risk, among other uses.
There have been increasing concerns about the quality, transparency, independence and consistency of ratings in the market.
In 2023, the Treasury consulted on bringing ESG ratings under FCA regulation, with strong support from industry. In 2025, the Government finalised legislation to bring ESG ratings into regulation.
We consulted on proposed rules and guidance for the regulation of ESG rating providers in CP25/34.
We have carefully considered the feedback, and engaged with a broad range of stakeholders as we prepared final rules for the regime.
In shaping the rules we have leveraged international standards and industry practice, including:
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