UKSIF response: FCA’s Discussion Paper (DP23/1) Finance for positive sustainable change

In our response, we express our support for much of the thinking and initial ideas outlined by the FCA in the DP.

We are very supportive of consideration by the FCA and other policymakers of how we can further promote the effectiveness of firms’ governance structures, ensuring the right checks and balances are in place, as well as incentive structures and corporate culture. With the discourse in many areas of the DP at a relatively nascent stage in financial services, it is very encouraging that the DP attempts to begin this conversation in a more comprehensive way across our industry.

We would welcome close collaboration between the FCA, our industry, and other stakeholders to clearly identify those existing industry frameworks relating to ESG governance, remuneration, culture, and other themes explored in the DP. This work could seek to enhance the operation of those existing frameworks in future by drawing on issues identified in the DP. These efforts could also clarify the links between the FCA’s thinking outlined in this paper, wider initiatives from government, and leading industry-wide initiatives, with the overall objective of supporting greater alignment between various policy and regulatory initiatives in the UK impacting our membership.

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