On 11 March 2025, the UK’s financial regulators confirmed they have decided not to move forward with proposed diversity and inclusion (D&I) rules for financial firms. This decision in a letter by the Financial Conduct Authority (FCA) and a letter by the Prudential Regulation Authority (PRA) marks the end
Defence – A Sustainable Investment? A View From The UK’s Financial Conduct Authority
By John Verwey, Rachel Lowe, Michael Singh & Sulaiman Malik on
On 11 March 2025, the Financial Conduct Authority (the “FCA”) published a statement clarifying that their rules, including with regards to sustainability, do not prevent investment in or financing of defence companies. The FCA confirmed that it is at the discretion of investors or lenders as to whether they provide capital to defence…
FCA’s Private Market Valuations Review – Good Practice but Room for Improvement
By John Verwey, Rachel Lowe, Sulaiman Malik & Michael Singh on
Background
On 5 March 2025, the United Kingdom’s Financial Conduct Authority (“FCA”) published the findings of its multi-firm review of valuation processes for private market assets (the “Review”). The Review covered firms operating in range of private asset classes, including: venture capital, infrastructure (equity and debt), private equity and private debt.…
Regulation Round Up
Welcome to the Regulation Round Up, a regular bulletin highlighting the latest developments in UK and EU financial services regulation.
Key developments in February 2025:
28 February
FCA Handbook Changes: The Financial Conduct Authority (“FCA”) published Handbook Notice 127, which sets out changes to the FCA Handbook made by the FCA board on…
Ping-Pong Match Appears Over: US Companies Apparently Definitively Relieved of Compliance Obligations Under the Corporate Transparency Act
By Frank Zarb, Louis Rambo, Peter Castellon, John Verwey & Rachel Lowe on
The Corporate Transparency Act (the CTA) requires a range of entities, primarily smaller, unregulated companies, to file reports with FinCen, and arm of the Treasury Department, identifying the entities’ beneficial owners, and the persons who formed the entity. The purpose of the CTA was to aid in the detection of terrorism, money-laundering, and tax evasion. …
CSRD Slashed: EU’s Corporate Sustainability Regulations Significantly Reduced
By John Verwey, Rachel Lowe, Sulaiman Malik & Michael Singh on
On 26 February 2025, the European Commission (the “Commission”) adopted a new package of proposals to simplify the regulations on sustainability. Their aim is to combine the competitiveness and climate goals of the European Union, which we reported on here, as part of their aim for a “simpler and faster” Europe.
The proposals…
Parked: The Extension of the UK’s Sustainability Disclosure Requirements to Portfolio Managers
By John Verwey, Rachel Lowe, Sulaiman Malik & Michael Singh on
On 14 February 2025, the Financial Conduct Authority (the “FCA”) updated its webpage on consultation paper (CP24/8) on extending the sustainability disclosure requirements (“SDR”) and investment labelling regime to portfolio managers. In the update, the FCA confirmed that it no longer intends to do so and will continue to reflect on the feedback received and…
Streamlining Sustainable Finance: Simplification of the EU Taxonomy
By John Verwey, Rachel Lowe, Sulaiman Malik & Michael Singh on
On 5 February 2025, the EU Platform on Sustainable Finance (the ‘‘Platform’’) published a report with recommendations on how to simplify the EU Taxonomy (the ‘‘Report’’). The EU Taxonomy is the EU’s classification system for sustainable activities. The Report sets out key areas of improvement and simplification of taxonomy reporting by…
Beyond the Deal: How Do You Expect SEC Exams and Enforcement to Evolve in 2025?
As we head further into 2025, the landscape of SEC exams and enforcement is poised for significant shifts. How will the SEC adapt to emerging trends and evolving market dynamics? In the first issue of Beyond the Deal in 2025, four of our regulatory lawyers weigh in on what to expect. From new regulatory priorities…
SEC Asks Court to Put Climate Change Litigation on Hold
By Frank Zarb & Louis Rambo on
As previously reported in our last post, The Fate of the New U.S. Climate Change Rules Under the New Republican Administration, legal challenges to the SEC’s rules mandating extensive new climate change disclosure is ongoing in the 8th Circuit U.S. Court of Appeals, and has been fully briefed and awaiting oral arguments.
Today…