UK Chancellor Rishi Sunak has unveiled a comprehensive roadmap aimed at reforming capital markets, enhancing green investment opportunities, and ensuring continued access to cash.
In his inaugural address at Mansion House, the Chancellor articulated his vision for the future of UK financial services, emphasizing a landscape that is “more open, more competitive, more technologically advanced, and more sustainable.” He introduced a detailed plan that outlines initiatives for the next several years.
On the front of green finance, Sunak revealed intentions to mandate reporting requirements for companies, pension schemes, financial institutions, and their investment products concerning their climate and environmental impact. This will also encompass the risks and opportunities associated with their operations.
The new integrated Sustainability Disclosure Requirements will streamline existing climate reporting frameworks, ensuring that consumers and investors receive the necessary information to make well-informed investment decisions. Additionally, the Government plans to collaborate with the Financial Conduct Authority to establish a new sustainable investment label, providing a clear benchmark for assessing the sustainability and impact of investments.
Further details were shared regarding the green projects eligible for funding through the UK’s inaugural sovereign green bond, set to be issued later this year. Initiatives such as zero-emissions buses, offshore wind projects, and efforts aimed at decarbonizing homes and buildings will qualify for financing, with an initial issuance target of at least £15 billion in green gilts.
Regarding legislation aimed at protecting cash access, Sunak announced a new consultation proposing laws to ensure that individuals can travel only a reasonable distance to withdraw or deposit cash. The FCA will be empowered to enforce these requirements effectively.
Consultations are also in progress concerning reforms to the regulation of wholesale capital markets and a comprehensive review of the prospectus regime. Sunak stated that the prospectus review will focus on simplifying and enhancing the rules governing the information companies must disclose when seeking to raise finance, making the process more agile and effective.