ESG

ESG

MiFID – Integration of Sustainability Preferences

ESMA’s call for evidence on the integration of sustainability preferences in the suitability assessment and product governance arrangements closes for feedback on 15 September 2023.

The MiFID II Delegated Regulation was updated from 2 August 2022 to integrate sustainability factors, risk and preferences into certain organisational requirements and operating conditions for investment firms.

That triggered a review and update of ESMA’s 2018 suitability guidelines, with the updated guidelines due to apply from 3 October 2023. As part of that process, ESMA’s Securities and Markets Stakeholder Group recommended that ESMA issue a call for evidence on how sustainability preferences are assessed and on possible alternative approaches following the publication of the guidelines.

ESMA’s call for evidence does not suggest changes to the guidelines, but is designed to help ESMA better understand how the requirements of MiFID II are being implemented, and investors’ experiences of and reactions to the inclusion of sustainability factors into investment advice and portfolio management services.

Sustainable Finance Disclosures Regulation

We expect to see a consultation from the European Commission during September 2023, seeking feedback on a comprehensive assessment of the Sustainable Finance Disclosure Regulation.