FCA's sustainability rules 'do not prevent investment' in defence companies

Amid increased defence spending

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...