Member

The Financial Services and Markets Act 2023 repeals retained EU law. Are the Government still committed to this? The Government are continuing to prioritise this work and have laid statutory instruments to replace the EU regulations on packaged retail and insurance-based investment products and the short selling regulations. The Financial Services Growth and Competitiveness Strategy, published on 15 July 2025, sets out the Government’s approach to delivering a regulatory environment for financial services that is proportionate, predictable and internationally competitive. The benefit of the SI on ESG is that it delivers on a key element of the Government’s agenda to boost growth. The ESG ratings are widely relied on by investors to guide investors’ decisions in line with sustainability risks, opportunities and preferences. The defence sector was also mentioned. There is no evidence of the defence industries having an issue with this. The regulated ASG ratings will improve transparency, address conflict of interest and reduce greenwashing. This was widely supported by industry when it was consulted.