Featured Product

    IOSCO Report Sets Out Next Steps for Work on Sustainable Finance

    April 14, 2020

    IOSCO published a report that examines the sustainable finance initiatives by the securities regulators and the industry. It offers a detailed analysis of the most relevant international initiatives and third-party frameworks and standards related to the Environmental, Social, and Governance (ESG) factors. The report also identifies a number of improvement areas and articulates the need for IOSCO to play a key role in this area. The report finds that lack of consistency and comparability across third-party frameworks could create an obstacle to cross-border financial activities and raise investor protection concerns.

    The report highlights three recurring themes that involve multiple and diverse sustainability frameworks and standards—namely, sustainability-related disclosures, a lack of common definitions of sustainable activities, and greenwashing and other challenges to investor protection. The report indicates that many issuers and asset managers operating cross-border may be subject to different regulatory regimes or participate in multiple regional or international third-party initiatives. The wide variety of regulatory regimes and initiatives, often with inconsistent objectives and requirements, may prevent stakeholders from fully understanding the risks and opportunities that sustainable business activities entail. As a next step, to overcome these identified challenges, IOSCO has decided to establish a Sustainability Task Force with a mandate to address transparency and promote investor protection.

    The Task Force will work to improve sustainability-related disclosures made by issuers and asset managers, collaborate with international organizations and regulators to avoid effort duplication, enhance coordination of relevant regulatory and supervisory approaches, and conduct case studies and analyses of transparency, investor protection, and other relevant issues within sustainable finance. The key work of the Task Force will be to:

    • Improve sustainability–related disclosures by issuers and asset managers. To this end, the Task Force will identify and develop categories of disclosure that are material for investors and that are capable of falling within the supervisory and regulatory competence of securities regulators.
    • Assist IOSCO members to identify and address greenwashing and other investor protection concerns. The Task Force would examine categories of disclosure to assess whether industry specific or more broad metrics would provide decision useful information and comparability between different issuers. The Task Force would also engage with the industry, voluntary third-party disclosure standard-setters and other relevant organizations.
    • Address relevant issues within sustainable finance. These issues could include transparency issues among ESG data providers, disclosure of methods and governance among credit rating agencies and ESG rating agencies, practices and experiences of asset managers on the use of sustainability-related factors in investment decisions processes, and risks of greenwashing in the market for sustainable investment products.

     

    Related Links

    Keywords: International, Banking, Securities, ESG, Climate Change Risk, Sustainable Finance, Transparency, Disclosure, Systemic Risk, Sustainability Task Force, Credit Rating Agencies, IOSCO

    Related Articles
    News

    BoE Seeks Information Before Migrating Statistical Reporting to BEEDS

    The Bank of England (BoE) published the Statistical Notice 2021/09 requiring additional information from firms and software vendors to assist in the onboarding and testing phases for migrating statistical reporting to the BEEDS portal.

    October 25, 2021 WebPage Regulatory News
    News

    FCA Publishes Final Rules on Investment Firms Prudential Regime

    The Financial Conduct Authority (FCA) published the final rules on the Investment Firms Prudential Regime (IFPR) to streamline and simplify the prudential requirements for solo-regulated UK firms authorized under the Markets in Financial Instruments Directive (MiFID).

    October 25, 2021 WebPage Regulatory News
    News

    CFRF Publishes Guides to Manage Financial Risks from Climate Change

    The working groups of the Climate Financial Risk Forum (CFRF) published a second round of guides (or Session 2 guides), written by the industry for the industry, to help financial firms manage climate-related financial risks.

    October 21, 2021 WebPage Regulatory News
    News

    PRA Finalizes Policy for Non-Performing Exposure Securitizations

    The Prudential Regulation Authority (PRA) published the final Policy Statement PS24/21 that contains the new Non-Performing Exposures Securitization Part of the PRA Rulebook and an updated Supervisory Statement SS10/18 on the general requirements and capital framework with respect to securitizations.

    October 21, 2021 WebPage Regulatory News
    News

    EBA Updates Filing Rules for Supervisory Reporting

    The European Banking Authority (EBA) published version 5.1 of the filing rules for supervisory reporting.

    October 19, 2021 WebPage Regulatory News
    News

    ECB Amends Guideline on Procedures for Collection of AnaCredit Data

    The European Central Bank (ECB) Guideline 2021/1829 on the procedures for the collection of granular credit and credit risk data has been published in the Official Journal of European Union.

    October 19, 2021 WebPage Regulatory News
    News

    ECB Amends Guideline on Procedures for Collection of AnaCredit Data

    The European Central Bank (ECB) Guideline 2021/1829 on the procedures for the collection of granular credit and credit risk data has been published in the Official Journal of European Union.

    October 19, 2021 WebPage Regulatory News
    News

    EBA Publishes Standards on Disclosure of Investment Policy Under IFR

    The European Banking Authority (EBA) published the final draft regulatory technical standards on disclosure of investment policy by investment firms, under the Investment Firms Regulation (IFR).

    October 19, 2021 WebPage Regulatory News
    News

    EU to Explore Potential of Establishing a Joint Cyber Unit

    The European Council adopted conclusions inviting the European Union (EU) and the member states to further develop the cybersecurity crisis management framework.

    October 19, 2021 WebPage Regulatory News
    News

    EC Sets Out Work Program for 2022

    The European Commission (EC) adopted the work program for 2022.

    October 19, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7598