top of page
  • Writer's pictureDeborah

On 18 November, ESMA released its Consultation Paper to gather feedback on the use of ESG or sustainability-related terms in fund names.

The Proposed Guidelines will apply to requirements under the UCITS Directive, AIFMD and Regulation 2019//1156 (cross-border distribution of investment funds).

Key provisions include:

  • General requirements pertaining to fund’s names in fund documents or marketing communications to tackle greenwashing.

  • Proportion of investments for funds’ names using ESG or sustainability-related terms, notably

  • A minimum proportion of at least 80% of the fund’s investments if a fund has any ESG-related words in its name.

  • Inclusion of an additional threshold of at least 50% of minimum proportion of sustainable investments for the use of the word “sustainable” or any other sustainability-related term in the name of the fund.

  • Funds that designate an index as a reference benchmark

  • Specific provisions for “impact” or impact-related names in these Guidelines

Comments must be submitted by February 20, 2023.

Recent Posts

See All

Product Corner - VAs : Quèsaco

Virtual Assets (VAs) or crypto assets refer to : “any digital representation of value that can be digitally traded, transferred or used for payment. It does not include digital representation of fiat

Upcoming Regulatory Deadlines to Watch

10 Aug 2023 - Deadline to submit comments to FCA Guidance Consultation (GC23/1) on crypto asset financial promotions. 5 Sep 2023 - Effective date of SEC Cybersecurity Risk Management, Strategy, Govern


bottom of page