UK Sustainability Disclosure Standards Guidance

from PIMFA Weekly News Bulletin - 7 August 2023

The Department for Business and Trade (DBT) has issued guidance on the UK government’s framework to create UK Sustainability Disclosure Standards (UK SDS) by assessing and endorsing the global corporate reporting baseline of the IFRS Sustainability Disclosure Standards issued by the International Sustainability Standards Board (ISSB).

Once endorsed the UK SDS may be referenced in any legal or regulatory requirements for UK entities.

To assist with assessment and endorsement of IFRS S1 and IFRS S2, the UK government has established 2 committees:

The UK Sustainability Disclosure Technical Advisory Committee (TAC) will assess IFRS Sustainability Disclosure Standards on a technical basis and provide independent recommendations on endorsement. The chair and membership (from a range of relevant professional backgrounds) will be appointed shortly.

The UK Sustainability Disclosure Policy and Implementation Committee (PIC) will provide analysis of the interactions between IFRS Sustainability Disclosure Standards and existing UK legislation and regulation. PIC’s members (formed of UK government departments and regulators) will provide advice on endorsement decisions and coordinate the implementation of UK SDS by Government and FCA.

Financial Reporting Council: Call for Evidence on the adoption of new IFRS Sustainability Disclosure Standards

The Financial Reporting Council (in its role as Secretariat to the UK Sustainability Disclosure Technical Advisory Committee) has issued a call for evidence on the proposed adoption of the new IFRS Sustainability Disclosure Standards Responses will inform the technical assessment for endorsing IFRS S1 and S2 in the UK.

UK Transition Plan Taskforce Status Update

The UK Transition Plan Taskforce (TPT) has published a status update, noting the intention of releasing the final version of its proposed climate transition plan disclosure framework in October 2023. The update also covers:

• The TPT’s response to its November 2022 consultation

• Recent UK and global developments in transition plan disclosure obligations

Industry views are sought from those preparing corporate disclosures, investors, and other stakeholders with an interest in sustainability reporting by 11 October 2023

• A timeline of key TPT publications

The TPT is committed to ensuring alignment with the Task Force on Climate-related Financial Disclosures’ (TCFD) recommendations and the International Sustainability Standard Board’s (ISSB) first two sets of sustainability standards.

Financial Ombudsman Service (FOS) expectations of businesses

FOS are sending a letter to larger firms and representatives outlining their expectations when it comes to working with them.

The letter gives an update on the work FOS are doing to improve their service so that they can help more customers more quickly, and their priorities in doing so. It also sets out how firms’ behaviour can impact on this, and how they can work with FOS to resolve disputes quickly and effectively. FOS want to ensure that they and firms have a clear shared understanding of their expectations as to how firms should work with them going forward.

FOS will also be writing to claims management companies and professional representatives to set out their expectations of them in making complaints to FOS. FOS will publish the letters on their website in the coming days.

Click here for the letter.

BoE/FCA joint response: Transforming data collection

The Bank of England (BoE) and FCA have published a joint response to Data Standards Recommendations from the Joint Transformation Programme in which they accept most of the Data Standards Committee’s recommendations (to advance the use of common data standards for the purposes of regulatory reporting), such as:

• defining the roles of the authorities in data standards

• agreeing a taxonomy of financial services data standards to support ongoing recognition of their usage and development requirements

• agreeing a standard set of metrics associated with the use of data standards to support ongoing benefits identification and prioritisation of effort required to iterate and develop

• creating and publishing the roadmap for strategic implementation of financial services data standards and an associated programme with budget to deliver.

Following consideration of funding and resource requirements the BoE and the FCA will provide an update on the scope and timelines in Q1 2024.

Mitigo Cyber Q&A: The Importance of Independent Assurance

In this 8-minute Q&A, Mitigo’s Lindsay Hill and Kerrie Machin discuss why you must get independent assurance to tackle your cyber risk and enable you to sleep at night.

Listen here

The PIMFA Indices Committee met in July and agreed changes to the portfolio weights of the MSCI PIMFA Index Series’. These changes will apply from Friday 1st September 2023 and will be updated on the current asset allocation pages at 5pm the day before.

To view the agreed asset allocation changes for the MSCI PIMFA Private Investor Index Series, click here.

To view the agreed asset allocation changes for the MSCI PIMFA Equity Risk Index Series, click here

As part of the Transformation Programme, the FCA will be releasing a new Form A in the coming months. The aim is to make it easier and quicker to apply for authorisation. Changes will be made to other application forms once the work on Form A is complete.

To find out more information you can access the FCA’s webpage here

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