The Financial Conduct Authority (FCA) has revealed it is establishing a new advisory committee to its board to work on ESG challenges.
Earlier this year, the board of the FCA decided to establish a brand new ESG Advisory Committee to help execute its ESG-related responsibilities.
These responsibilities include meeting the government’s expectation that the FCA has regard to the UK’s commitment to achieving a net zero economy by 2050.
According to the FCA, the Committee’s role will be to provide advice to the board on how it executes oversight of ESG issues relevant to the FCA both as a regulator and its own operations, relevant emerging ESG topics or issues and how the FCA should develop its ESG strategy in keeping with its objectives and regulatory principles.
In addition, the Committee’s membership will include a small number of external experts who have in-depth knowledge of ESG issues in the financial sector. Members will be added to the board in a personal capacity and will need to abide by a conflict of interest policy.
FCA said, “We expect the Committee to meet for the first time in Q4 2022, and normally quarterly from then onwards, but it can meet more frequently where necessary. The Board will also select a Chair of the Committee and we will provide secretariat support.”
The FCA recently warned companies that offer buy now pay later (BNPL) products that their BNPL financial promotions must comply with financial promotion rules.
The FCA said unauthorised companies may be committing a criminal offence if they don’t have an FCA-authorised firm approve their financial promotions.
The authority noted that authorised firms selling unregulated or exempt BNPL products must comply with the relevant rules unless an exemption applies. This includes that their BNPL promotions must be clear, fair and not misleading.
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