• The FCA published final ESG ratings rules as PS26/22, dated 3 November 2026, according to the regulator's publication page.
• From 29 June 2028, providers of ESG ratings in the UK need FCA authorisation unless an exclusion applies.
• The authorisation gateway opens on 24 June 2027, and application periods are staggered.
• The regime covers transparency, governance, systems and controls, conflicts of interest and engagement with users and rated entities.
• The FCA does not prescribe a sustainability view or methodology, so rating outcomes will still differ between providers.

The Financial Conduct Authority has finalised its regime for ESG rating providers, bringing a market that has run on voluntary codes into the UK regulatory perimeter. According to the FCA's PS26/22, providers will need authorisation from 29 June 2028. The regulator says the aim is to raise standards and help investors make better-informed decisions, as Finextra reported.

What the regime requires

The rules cover transparency, governance, systems and controls, the management of conflicts of interest, and engagement with users of ratings and with rated entities, per the FCA's publication summary. Providers must meet baseline FCA requirements alongside tailored ones. This is a conduct regime for the process around a rating, and it sets a supervised floor for how raters operate day to day.

The timetable

Firms providing ESG ratings in the UK must hold FCA authorisation and the relevant permission from 29 June 2028 unless an exclusion applies, according to the FCA. The authorisation gateway opens on 24 June 2027, and the regulator is staggering application periods through separate directions. Providers therefore have roughly a year between gateway opening and the point at which unauthorised activity is barred.

What the FCA does not regulate

The FCA states that the regime regulates how ESG ratings are produced, governed and communicated, and does not prescribe a particular sustainability view or methodology. Two authorised raters can still score the same company differently. What changes is that the reasons for the divergence, and any conflicts behind it, should be easier for users to see and for the supervisor to examine.

Where the rules came from

The final rules follow consultation paper CP25/34, which opened on 1 December 2025 and closed on 31 March 2026, according to the FCA. The regulator says its approach draws on IOSCO recommendations, and it also cites the ICMA code of conduct as an influence. The path runs from international principles and industry self-regulation to a binding, supervised UK framework.

What it means for users and rated companies

Asset managers and banks that buy ESG ratings should map which of their vendors will seek UK authorisation and what each vendor discloses about conflicts and methodology governance. Rated issuers gain a defined channel for engagement. The practical test is supervisory: how the FCA handles rater conflicts, such as advisory work sold to the entities being rated, once the gateway opens.