IA warns of problematic data gaps in response to FCA TCFD proposals

Lack of data could be detrimental

The Investment Association (IA) has warned of misleading disclosures, mis-pricing of assets and mis-allocation of capital if the Financial Conduct Authority’s (FCA) proposals on climate-related disclosures are not amended, while rejecting the need for a new UK green bond standard.

At the end of June this year the FCA released two consultations proposing new rules on climate-related disclosures. Responses to the consultation were due on 10 September and while the IA said it welcomed the proposals, it voiced a number of concerns, particularly around data gaps and reliability. CP21/17 required asset managers, life insurers and FCA-regulated pension providers to produce climate-related disclosures aligned with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).   In response to this consultation the IA flagged the need for "greate...