FCA publishes follow-up letter on SLL market

The Financial Conduct Authority (FCA) has published a follow-up letter sharing insights from its ongoing engagement with banks on the sustainability-linked loans (SLL) market.

• Published document and timeline: FCA published a follow-up letter (referenced PDF) building on its previous 2023 letter, stating the market has matured “since 2023” and noting progress in better practice and more robust product structures; related reference is “Our strategy 2025 to 2030” which frames the FCA’s role in channeling capital to the transition to net zero.
• Confirmed actions and planned work: Confirmed actions include publishing the follow-up letter, ongoing monitoring of the SLL market, and working closely with the Transition Finance Council (TFC); planned initiatives are to continue monitoring SLLs as part of wider transition finance work, promote the UK’s position as a transition finance hub aligned with Government ambitions, and encourage banks to engage with the TFC.