Letter: International Platform on Sustainable Finance (IPSF) and sustainable finance standards adopted in the E.U. and U.K. after Brexit dated 21 April 2021

On 3 February 2021, HM Treasury announced that the U.K. would become a member of the International Platform on Sustainable Finance (IPSF).

The FMLC understands that the IPSF is a forum for public authorities in charge of developing sustainable finance policies/initiatives to help investors contribute to climate and environmental objectives.  The IPSF aims to provide a forum to allow members to share best practices, compare initiatives and identify barriers to, and opportunities for, sustainable finance.  The Committee supports the coordination efforts made globally to scale up sustainable finance and promote integrated markets internationally.

Considering the complexity of the existing regulatory backdrop, and the challenges that the firms are facing with respect to disclosure/compliance requirements, the FMLC urges HM Treasury to provide clarity on the approach it intends to take towards the Sustainable Finance Disclosure Regulation and other pieces of legislation post Brexit. The FMLC suggests using either an approach which takes into account E.U. standards (but potentially enhancing detailed disclosure requirements at Level 2, where appropriate) or an outcomes-based approach which is consistent with the direction of travel in the E.U. and beyond, to avoid regulatory conflict.

The letter to HM Treasury is available as PDF