On June 8 the European Commission published for feedback six drafts delegated acts outlining the obligations for a broad range of EU market participants to advise clients on sustainable risks.
Each delegated act focuses on a specific subject including:
Obligation for investment companies to integrate sustainability risks and sustainability factors in the management of UCITS funds
Obligation for investment firms to integrate sustainability factors and preferences into the product governance framework
Obligation for investment firms to integrate sustainability factors, risks and preferences into certain organisational requirements and operating conditions (i.e. risk management policies, conflict of interest policies…)
Obligation for alternative investment fund managers to take into account sustainability risks and sustainability factors
Interested parties are invited to provide their feedback by July 6, 2020. The Commission will take the feedback received into account when finalizing the initiative.
The EU’s action plan on sustainable finance aims to provide clarity on the duties of financial institutions to provide their clients with clear advice on the environment, social and governance (ESG) risks and opportunities attached to their investments.
The aforementioned delegated directives can be found here: https://ec.europa.eu/info/law/better-regulation/have-your-say/initiatives