Featured Product

    EC Consults on Legislative Initiatives Related to Sustainable Finance

    June 08, 2020

    EC is consulting on six legislative initiatives related to sustainable finance. The legislative initiatives aim to shift capital flows away from activities that have negative social and environmental consequences and direct finance toward economic activities that have genuine long-term benefits for society. The legislative initiatives comprise amendments to four regulations—namely amendments to the Solvency II (Regulation 2015/35), Regulations 2017/2358 and 2017/2359, Regulation 2017/565, and Regulation 231/2013. The legislative initiatives also involve amendments to two directives—the revised Markets in Financial Instruments Directive (MiFID II or 2017/593) and Undertakings for Collective Investment in Transferable Securities (UCITS or Directive 2010/43/EU). Feedback is requested by July 06, 2020.

    The EU 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 draft Regulations and Directives are part of a broader EC initiative on sustainable development. It lays the foundation for an EU framework that puts sustainability considerations at the center of the financial system to support transforming the economy into a greener, more resilient, and circular system in line with the European Green Deal objectives. The legislative initiatives comprise the following draft delegated regulations and directives:

    • Draft Regulation that amends Solvency II Regulation regarding the integration of sustainability risks in the governance of insurance and reinsurance undertakings
    • Draft Regulation that amends Delegated Regulations 2017/2358 and 2017/2359 regarding the integration of sustainability factors and preferences into the product oversight and governance requirements for insurance undertakings and insurance distributors and into the rules on conduct of business and investment advice for insurance-based investment products
    • Draft Regulation that amends Regulation 2017/565 regarding the integration of sustainability factors, risks, and preferences into certain organizational requirements and operating conditions for investment firms
    • Draft Regulation that amends Regulation 231/2013 regarding sustainability risks and sustainability factors to be taken into account by Alternative Investment Fund Managers
    • Draft Directive that amends MiFID II regarding the integration of sustainability factors and preferences into the product governance obligations
    • Draft Directive that amends UCITS Directive regarding the sustainability risks and sustainability factors to be taken into account for UCITS

     

    Related Links

    Comment Due Date: July 06, 2020

    Keywords: Europe, EU, Banking, Insurance, Securities, Sustainable Finance, Solvency II, Governance, Reinsurance, MIFID II, ESG, Climate Change Risk, UCITS Directive, EC

    Featured Experts
    Related Articles
    News

    EBA Guide to Monitor Threshold for Intermediate Parent Undertakings

    The European Banking Authority (EBA) published the final guidelines on the monitoring of the threshold and other procedural aspects on the establishment of intermediate parent undertakings in European Union (EU), as laid down in the Capital Requirements Directive (CRD).

    July 28, 2021 WebPage Regulatory News
    News

    PRA Finalizes Approach to Supervision of International Banks

    In a recent Market Notice, the Bank of England (BoE) confirmed that green gilts will have equivalent eligibility to existing gilts in its market operations.

    July 26, 2021 WebPage Regulatory News
    News

    FCA Issues PS21/9 on Implementation of Investment Firms Regime

    The Financial Conduct Authority (FCA) published the policy statement PS21/9 on implementation of the Investment Firms Prudential Regime.

    July 26, 2021 WebPage Regulatory News
    News

    EBA Proposes Regulatory Standards to Identify Shadow Banking Entities

    The European Banking Authority (EBA) proposed regulatory technical standards that set out criteria for identifying shadow banking entities for the purpose of reporting large exposures.

    July 26, 2021 WebPage Regulatory News
    News

    IOSCO Proposes Recommendations on ESG Ratings and Data Providers

    The Board of the International Organization of Securities Commissions (IOSCO) proposed a set of recommendations on the environmental, social, and governance (ESG) ratings and data providers.

    July 26, 2021 WebPage Regulatory News
    News

    ESMA Group Issues Recommendations on RFR Switch in Interdealer Market

    The European Securities and Markets Authority (ESMA) published recommendations from the Working Group on Euro Risk-Free Rates (RFR) on the switch to risk-free rates in the interdealer market.

    July 26, 2021 WebPage Regulatory News
    News

    EC to Defer Application of SFDR Standards Till July 2022

    The European Commission (EC) announced plans to defer the application of 13 regulatory technical standards under the Sustainable Finance Disclosure Regulation (2019/2088) by six months, from January 01, 2022 to July 01, 2022.

    July 23, 2021 WebPage Regulatory News
    News

    EIOPA Consults on Reporting and Disclosures Under Solvency II

    The European Insurance and Occupational Pensions Authority (EIOPA) proposed to amend the supervisory statement on supervision of run-off undertakings that are subject to Solvency II regulation.

    July 23, 2021 WebPage Regulatory News
    News

    BoE Consults on Approach to Setting MREL, Publishes Bail-In Guidance

    The Bank of England (BoE) published a consultation paper on approach to setting minimum requirement for own funds and eligible liabilities (MREL), an operational guide on executing bail-in, and a statement from the Deputy Governor Dave Ramsden.

    July 22, 2021 WebPage Regulatory News
    News

    EBA Seeks Views on Proportionality Assessment Methodology

    The European Banking Authority (EBA) is seeking preliminary input on standardization of the proportionality assessment methodology for credit institutions and investment firms.

    July 22, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7295