LONDON, Dec 1 (Reuters) - Britain’s financial regulator on Monday set out plans to bring companies that provide environmental, social and governance $(ESG)$ ratings under its oversight, vowing to tackle conflict-of-interest concerns and improve transparency.

The Financial Conduct Authority wants ratings providers to disclose possible conflicts of interest such as when they are both assessing companies' ESG credentials and simultaneously advising them on how to improve. The regulator also wants providers to make clear which ESG factors they assess and to publish details of how they handle complaints.

The industry for ESG ratings, currently subject to a voluntary code of conduct, has boomed in recent years. But trust in the ratings has been varied, with many investors worried about opaque rating methodologies and about companies' green credentials being inflated.

Finance Minister Rachel Reeves wants to cement Britain as a world leader in sustainable finance, including by addressing the lack of transparency behind ESG ratings.

After a four-month consultation on the FCA's plans, the regulator said on Monday the rules would eventually come into force in June 2028.

(Reporting by Phoebe Seers; Editing by Tommy Reggiori Wilkes)

((thomas.wilkes@tr.com; +44 (0) 7769 955711;))