The TCFD Roadmap unfolds
On 22 June 2021, the UK Financial Conduct Authority (FCA) published Consultation Paper (CP 21/17) concerning its proposals for climate-related disclosures by asset managers, insurers and FCA-regulated pension providers towards investors, with the first disclosures to be made by 30 June 2023.
The proposals represent another step on the road towards mandatory climate-related disclosures and are consistent with, and enshrine, the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD).
The consultation closes on 10 September 2021 and the FCA aims to publish a policy statement later in 2021.
A separate consultation paper has also been published on enhancing climate-related disclosures by standard listed companies (CP21/18).
In our briefing below we look at the proposals in respect of asset managers. Significantly, firms with less than £5bn assets under administration or management will be exempt from all the disclosure requirements; and AIFMs of unlisted, unauthorised AIFs and segregated portfolio managers will not be required to make their portfolio-level disclosures public (though they will be required to make those disclosures available to a client on request and they will have to make entity-level disclosure public).