Investment management update - March 2024

14 March 2024

Welcome to the latest edition of our investment management update. This publication has been tailored to highlight topical news, cases and changes in the law impacting the investment management sector.

  • On 29 February 2024, the FCA published a report on its Wholesale Data Market Study, which looked at competition in wholesale data, benchmarks, and credit ratings. The FCA found no market-wide evidence of insufficient access to, or quality of, wholesale data. However, the study found evidence of high prices across all three markets due to competition issues. The FCA will not intervene by making a market investigation reference to the Competition and Markets Authority due to concerns about unintended consequences, but it will consider whether regulations can be improved.

MS23/1.5: Wholesale Data Market Study Report (

  • On 27 February 2024, the Financial Reporting Council announced a fundamental review of the Stewardship Code 2020. The review will comprise of three phases and a revised Code is likely to be published in early 2025.

Statement: FRC policy update - launch of the UK Stewardship Code 2020 review

  • On 23 February 2024, the Government published a response to the parliamentary Environmental Audit Committee’s report on net zero transition. The Government’s response says that it will soon publish a consultation on the UK’s Green Taxonomy. At some point there will also be a consultation on whether to make Transition Pathway Taskforce guidance mandatory, along with the incorporation of the ISSB in the UK. The Government will also consult on the incorporation of the Taskforce for Nature-based Financial Disclosures (TNFD), although a timeline is not given. In early 2024, there will be a consultation on voluntary carbon markets and a labelling regime for carbon credits.

The financial sector and the UK’s net zero transition: Government Response to the Committee’s First Report - Environmental Audit Committee

  • On 21 February 2024, the FCA published a report on the implementation of the Consumer Duty. The report details good practices and areas for improvement. The latter includes embedding the Consumer Duty throughout all areas of a firm, pre-empting problems, selecting the right data, sharing information along the value chain, treating vulnerable customers well, and ongoing concerns about price clustering in the market.

Consumer Duty implementation: good practice and areas for improvement | FCA

Consumer Duty: the art of the possible in a year | FCA

  • On 14 February 2024, the FCA published Market Watch 77. The latest edition of the newsletter focuses on trading by organised crime groups and what firms should look out for in relation to financial crime.

Market Watch 77 | FCA

  • On 2 February 2024, the FCA uploaded a new webpage on the Sustainability Disclosure Requirements and Labelling Regime. The landing page summarises the regulatory requirements, the implementation timeframe, the process to use a product label, and other information for firms.

Sustainability disclosure and labelling regime | FCA

Europe ex UK
  • On 28 February 2024, the European Council rejected proposals to impose requirements on large businesses to carry out due diligence to identify impacts on human rights and the environment. The Corporate Sustainability Due Diligence Directive (CSDDD) is effectively in limbo pending the upcoming European Parliament elections in June 2024. It is rare for the Council to outright block legislation proposed by the Parliament in this manner. The move appears to follow concerns emanating from certain EU Member States, most notably Germany and, more recently, France, about the impact of the proposals on the competitiveness of EU businesses.

Watch: press conference by Lara WOLTERS (S&D, NL), European Parliament Rapporteur on Corporate Sustainability Due Diligence Directive

  • On 20 February 2024, the European Council adopted amendments to MiFIR and MiFID II, including the creation of a consolidated tape (a centralised repository of trading data), a general ban on payment for order flow, and new requirements for commodity derivatives. The final legislation will be published in the EU’s Official Journal soon, and Member States will have 18 months to implement the new rules in national law.

MiFIR and MiFID II: Council adopts new rules to strengthen market data transparency - Consilium (

  • On 20 February 2024, the EBA published two consultations on the Capital Requirements Regulation III. The papers concern the implementation of requirements in relation to operational risk. The first consultation on the own funds’ requirement is open until 21 May 2024, and the second consultation on disclosures is open until 30 April 2024.

Consultation paper on BI-related mandates in the CRR3.pdf (

Consultation paper on its on pillar 3 operational risk disclosures.pdf (

  • On 8 February 2024, the European Council and the European Parliament agreed to delay the adoption of the European Sustainability Reporting Standards (ESRS) for certain sectors and for non-EU companies by two years. The ESRS apply to defined companies under the Corporate Sustainability Reporting Directive. The EU authorities’ new deadline is the end of June 2026, but they have called for the publication of the draft standards as soon as possible before then.

Press release: Council and Parliament agree to delay sustainability reporting for certain sectors and third-country companies by two years

  • On 7 February 2024, the European Parliament adopted AIFMD II and reforms to the UCITS Directive. The Council has already adopted the text and the final version is due to be published in the EU’s Official Journal in the coming weeks.

Parliament approves deal on updated rules for hedge funds and retail funds | News | European Parliament (

EP adopted legal text

  • In a webinar on 7 February 2024, ESMA said that it is developing indicators to help it assess greenwashing risks in asset management.

Slide deck: Webinar on ESMA Risk Articles on sustainable finance

  • On 5 February 2024, the European Council and the European Parliament reached an agreement on the ESG Ratings Regulation. The regulation will bring ESG ratings providers into the regulatory regime and introduce transparency requirements for ratings methodologies. The rules will be subject to formal adoption votes in each institution before the legislation is published in the EU’s Official Journal in the coming months.

EP press release: Environmental, social and governance (ESG) ratings: Council and Parliament reach agreement