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FCA plans tougher ESG scrutiny amid ‘poor’ disclosures

Regulator's initial findings of the sector highlight the 'potential for widespread failings'

The FCA warned benchmark administrators, including FTSE Russell, MSCI, and Morningstar, that it would be undertaking more work in this area
The FCA warned benchmark administrators, including FTSE Russell, MSCI, and Morningstar, that it would be undertaking more work in this area Photo: Alamy

The Financial Conduct Authority is ramping up its scrutiny of green benchmarks, after finding the quality of ESG-related disclosures made by benchmark administrators was "poor".

In a 'Dear CEO' letter on 20 March, the City watchdog warned benchmark administrators, including FTSE Russell, MSCI, and Morningstar, that it would be undertaking more work in this area.

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