The Financial Conduct Authority (FCA) said its sustainability regulatory regime will not stymie investments in or financing of defence companies, as the UK and countries across Europe gear up for an increased military expenditure following increasing uncertainty over the future of security alliances with the US.
According to a notice on Tuesday (11 March) from the watchdog, "there is nothing in our rules, including those related to sustainability, that prevents investment or finance for defence companies". The FCA's current sustainable finance rules apply to firms providing financial products and services, as well as some listed companies, but the regulations do not require financial institutions to treat defence companies any differently to other listed entities. UK companies to benefit from Starmer's increased defence spending Rather, the regulator's sustainability-related rules have t...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
