PS26/22: ESG ratings: final regime

Read PS26/22 (PDF)[3]

What we are changing

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[4] from HM Treasury to bring ESG ratings within our regulatory perimeter.

We want to:

• make ESG ratings more transparent, reliable and comparable
• support better decision-making and greater confidence in the market
• be proportionate and support growth in sustainable finance

Our approach is shaped by international standards, including recommendations from the International Organization of Securities Commissions[5] (IOSCO).

The new regime requires ESG rating providers to comply with baseline FCA rules alongside tailored requirements to support trust in the market. 

Who this is for

Our rules will be relevant to:

• ESG rating providers
• users of ESG ratings (including asset managers, asset owners and benchmark administrators)
• companies that are rated
• trade associations

The policy statement may also be of interest to:

• civil society organisations
• other regulators and policy makers
• academics and journalists

Next steps

Firms that may be in scope should start preparing now.

Firms should:

• understand whether the framework could apply to their activities
• review the final rules and guidance
• consider whether they need FCA authorisation
• start preparing for implementation
• engage early with our Pre-Application Support Service (PASS) from February 2027  

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.  

Find out how to prepare[6].

Background

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[2].  

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: 

• IOSCO recommendations[5]
• the International Capital Market Association (ICMA) Code of Conduct for ESG Ratings and Data Providers[8]