On August 2, the following Delegated Regulations were published in the Official Journal of the European Union (OJEU):
Commission Delegated Regulation 2021/1255 amends Delegated Regulation (EU) No 231/2013 as regards the sustainability risks and sustainability factors to be taken into account by Alternative Investment Fund Managers, notably with the following additions:
AIFMs shall take into account sustainability risks when complying with the requirements
Where AIFMs consider principal adverse impacts of investment decisions on sustainability factors, they shall take into account such principal adverse impacts when complying with the requirements
AIFMs shall retain the necessary resources and expertise for the effective integration of sustainability risks
AIFMs shall include conflicts of interest that may arise as a result of the integration of sustainability risks in their processes, systems and internal controls
The risk management policy shall comprise procedures necessary to enable the AIFM to assess for each AIF it manages the exposure of that AIF to market, liquidity, sustainability and counterparty risks, and the exposure of the AIF to all other relevant risks, including operational risks, which may be material for each AIF it manages
Commission delegated regulation (EU) 2021/1253 of 21 April 2021 amending Delegated Regulation (EU) 2017/565 as regards the integration of sustainability factors, risks and preferences into certain organisational requirements and operating conditions for investment firms.
Commission delegated regulation (EU) 2021/1254 of 21 April 2021 correcting Delegated Regulation (EU) 2017/565 supplementing Directive 2014/65/EU of the European Parliament and of the Council as regards organisational requirements and operating conditions for investment firms and defined terms for the purposes of that Directive.
Commission delegated regulation (EU) 2021/1270 of 21 April 2021 amending Directive 2010/43/EU as regards the sustainability risks and sustainability factors to be taken into account for Undertakings for Collective Investment in Transferable Securities (UCITS).
The Delegated Regulations were initially adopted by the European Commission in April 2021, see and refer to our article EU/EC Adopts Sustainable Finance Package (ameiscorp.com).
All the Delegated Regulations and Directive will enter into force on 22 August 2021 and will apply from 2 August 2022.