Tuesday June 9 2020
News Source: Fund Regulation
Focus: ESG
Type: General
Country: European Union
On 8th June 2020, the European Commission published the following draft delegated directives and rules on sustainable finance and the obligation to advise clients on social and environmental aspects:
- Sustainable finance – obligation for mutual funds to advise clients on social & environmental aspects
- Sustainable finance – obligation on investment funds to advise clients on social & environmental aspects
- Sustainable finance – obligation for insurance firms & brokers to advise clients on social & environmental aspects
- Sustainable finance – obligation for (re)insurance companies to advise clients on social & environmental aspects
- Sustainable finance – obligation for investment firms to advise clients on social and environmental aspects of financial products
- Sustainable finance – obligation for alternative investment funds to advise clients on social & environmental aspects
The EU’s action plan on sustainable finance seeks to clarify the duties of financial institutions to provide their clients with clear advice on the social and environmental risks and opportunities attached to their investments.
The aim is to:
- shift capital flows away from activities that have negative social and environmental consequences
- direct finance towards economic activities that have genuine long-term benefits for society.
The draft acts are open for feedback for 4 weeks (08 June 2020 – 06 July 2020 (midnight Brussels time)).
Click on the above link for further information.