The EU did not properly consider conflicts of interest when it hired the US investment manager BlackRock to advise on environmental regulation for banks, an influential watchdog has said.
The European ombudsman, Emily O’Reilly, said the European commission, the EU’s executive arm, should strengthen its conflict of interest rules in light of the findings, in a judgment published on Wednesday.
BlackRock, the world’s largest investor, had $7.8tn (£5.8tn) in assets under management at the end of September. In March, it won a tender from the EU to advise on how to integrate ESG (environmental, social and governance) issues into banking regulation. BlackRock has already carried out much of the work required under the contract.