The FCA estimates it could deliver these savings by replacing detailed product-level reports based on the Task Force on Climate-related Financial Disclosures (TCFD) with simpler, more targeted information for retail investors, in line with the Consumer Duty.
The changes aim to give investors clearer insight into how climate risks – such as floods, storms and other extreme weather events – could affect investment performance, while reducing unnecessary costs to firms.
Michelle Beck, director of wholesale buy-side at the FCA, said: 'As part of being a smarter, more proportionate regulator, we’re cutting complexity in our rules for asset managers, while keeping the focus on clear, useful information for investors.
'These proposals will make it easier for firms to communicate with their customers in ways that genuinely inform and engage them.'
The proposals follow a review of how the current rules are working. The FCA found that while the rules have improved firms’ awareness of climate risks, product-level reports are often seen as too complex by investors and not widely used.
The FCA is seeking views from asset managers, asset owners, trade bodies, and consumer groups to make sure the proposed rules work in practice and support growth.
The consultation is open until 13 July 2026. The FCA aims to finalise and implement the rule change in the autumn.
The FCA estimates the proposals could save firms around £20m a year, based on its analysis which drew from feedback from industry on reporting costs and a voluntary survey of a sample of firms.
The proposals form part of the FCA’s wider work to streamline sustainability reporting requirements for asset managers and FCA-regulated asset owners.Under the proposals:
Retail investors would receive relevant information on how material climate risks could affect a product’s financial performance.
Institutional clients would be able to request key emissions data from firms, but this would no longer need to be published in full reports.
The proposals complement the FCA’s Sustainability Disclosure Requirements for asset managers, which aim to help retail investors navigate the market for sustainable investment products and reduce greenwashing.
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