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Published April 16, 2021
The UK’s principal financial regulators are now required to make climate considerations.
Following a letter from the Chancellor, the Financial Conduct Authority (FCA) and the Prudential Regulation Committee (PRC), which supervise financial services firms, should now take into account the Government’s legally binding commitment to transition to net zero by 2050.
The transition to net zero is now included in the remits of both the FCA and the PRC, while the Bank of England’s Monetary Policy Committee (MPC) and Financial Policy Committee’s (FPC) remits were updated by the Chancellor at Budget 2021.
The Chancellor’s letter sets out the Government’s ambition to deliver a financial system that supports a net zero economy and mobilises private finance behind sustainable and resilient growth, as well as support the UK’s place to boost the competitiveness of its financial services.
With this move, the UK aims to raise global ambition ahead of COP26 by making sure every financial decision takes climate change into consideration. Sustainability is part of the government’s strategy for strong and balanced growth.
Tags Bank of England’s Monetary Policy Committee Climate Change Financial Conduct Authority Financial Policy Committee Prudential Regulation Committee