AIC supports greater regulatory oversight of ESG data and ratings providers

Response to the FCA’s feedback statement “ESF integration in UK capital markets”.


The Association of Investment Companies (AIC) has responded to the FCA’s feedback statement, “ESG integration in UK capital markets” (FS22/4).

Richard Stone, Chief Executive of the Association of Investment Companies (AIC), said: “It’s vital that investors can trust ESG data and ratings which are increasingly used in investment decision-making. So we strongly support the FCA’s view that greater regulatory oversight is essential to provide reliable and objective information.

“It’s clear that ESG data and ratings services must be well-governed, independent, transparent and have reliable methodologies and processes. Without proper oversight of these providers there are risks of misallocation of investments, greenwashing and consumer harm.

“ESG is an increasingly important investment consideration for investors, but too many claims still do not stand up to scrutiny. We have called for high standards so investors can clearly differentiate ESG funds from other investment products. We look forward to working with the FCA and the Treasury to ensure ESG data and ratings are robust and credible.”


- ENDS -

Follow us on Twitter @AICPRESS

Notes to editors

  1. The Association of Investment Companies (AIC) was founded in 1932 to represent the interests of the investment trust industry – the oldest form of collective investment. Today, the AIC represents a broad range of closed-ended investment companies, incorporating investment trusts and other closed-ended investment companies and VCTs. The AIC’s members believe that the industry is best served if it is united and speaks with one voice. The AIC’s mission statement is to help members add value for shareholders over the longer term. The AIC has 360 members and the industry has total assets of approximately £265 billion.
  2. Disclaimer: The information contained in this press release does not constitute investment advice or personal recommendation and it is not an invitation or inducement to engage in investment activity. You should seek independent financial and, if appropriate, legal advice as to the suitability of any investment decision. Past performance is not a guide to future performance. The value of investment company shares, and the income from them, can fall as well as rise. You may not get back the full amount invested and, in some cases, nothing at all.
  3. To stop receiving AIC press releases, please contact the communications team.