# The Financial Services and Markets Act 2000 (Regulated Activities) (ESG Ratings) Order 2025, Note: Explanatory note


(This note is not part of the Order)
This Order amends the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (S.I. 2001/544) (“the Regulated Activities Order”) so that the provision of Environmental, Social or Governance (“ESG”) ratings becomes a regulated activity within the meaning of the Financial Services and Markets Act 2000 (c. 8).
Part 1 of the Order sets out preliminary matters. It makes provision for the Order to come into force for certain purposes ahead of the date that ESG ratings will be regulated to enable the Financial Conduct Authority (the “FCA”) and the Financial Ombudsman Service to make rules and carry out other steps prior to regulation.
Part 2 of the Order amends the Regulated Activities Order. Article 6 inserts a new Chapter 15F, including article 63U to provide that the provision of ESG ratings is a specified activity, unless falling within one of the exclusions at articles 63V to 63Z6. New article 63Z7 includes definitions relating to the specified activity.
Part 3 of the Order contains transitional and savings provisions for those persons that have applied for permission (or variation of an existing permission) under Part 4A of the Act for the regulated activity specified by article 63U of the Regulated Activities Order. The provisions allow those who have applied, as directed by the FCA, in their relevant application period to continue carrying out the regulated activity specified in article 63U after the main commencement day if the FCA has not yet determined their application. There is also provision for those who applied outside their relevant application period, withdrew their application or had their application refused to continue their existing business under the supervision of the FCA. The transitional and savings provisions cease to have effect one year after the main commencement day.
Part 4 of the Order allows the FCA and Financial Ombudsman Service to rely on any steps they take to consult on rules and guidance before the relevant provisions of the Order come into effect for the purposes of enabling them to make rules or give guidance.
A de minimis assessment of the effect that this instrument will have on the costs of business, the voluntary sector and the public sector is available from His Majesty’s Treasury, 1 Horse Guards Road, London SW1A 2HQ or on www.gov.uk and is published alongside the Order on www.legislation.gov.uk.

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Source: https://www.legislation.gov.uk/ukdsi/2025/9780348275995/note (the official version)
Page: https://openlegislation.uk/draft-financial-services-and-markets-act-2000-regulated-activities-esg-ratings-order-2025/note
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.