Finance for positive sustainable change: governance, incentives and competence in regulated firms – responding to the FCA

The FCA has just published DP23/1, a Discussion Paper seeking input on how firms could best embed sustainable practices in their organisation.  The FCA are also soliciting views as to what their role, as regulator, should be in encouraging firms to become more sustainable.

CFA UK wishes to convene a working group of up to 8 volunteers to respond to the FCA.  The group will need to address questions like:

·       To what extent sustainable business practices should be mandatory for firms;

·       Whether staff remuneration should be linked to sustainability outcomes and, if yes, how;

·       What fund and firm board members could do, or be required to do, to make their businesses and products more sustainable;

·       Whether the current provision and availability of training materials in sustainable investment is adequate or whether there are notable gaps;

·       Whether there are examples of firms misrepresenting their ESG credentials and what the consequences of these misrepresentations are.

The purpose and activity of this working group is to:

·       Author a letter in response to the FCA’s forthcoming consultation

Who are CFA UK looking for?

·       Individuals with a strong personal interest and creative ideas on how to raise sustainability standards across the investment sector

·       Availability for up to 18-24 hrs during Q4, 2022 (2hrs-2.5hrs/week for 2 months)

What will you get out of it?

·       Influence developments in developing sustainability across the investment sector

·       Network building

·       Acknowledgement of your personal contribution in the letter to the FCA and publicly in LinkedIn and on the professionalism page of the CFA website

·       Opportunity to present your findings to CFA UK’s Professionalism Steering Committee

Compliance Notes:

·       Group members should seek and obtain compliance clearance from their employers in advance of participating

·       Group members will participate in a personal capacity and not attend as representatives of their employer