Featured Product

    EC Issues Legislative Proposals on Sustainable Finance in EU

    May 24, 2018

    EC presented a package of measures as a follow-up to its action plan on financing sustainable growth. The package includes proposals aimed at establishing a unified EU classification system of sustainable economic activities (taxonomy); improving disclosure requirements on how institutional investors integrate environmental, social, and governance (ESG) factors in their risk processes; and creating a new category of benchmarks that will help investors compare the carbon footprint of their investments. EC also proposed to amend certain Delegated Acts under the Markets in Financial Instruments Directive (MiFID II) and the Insurance Distribution Directive (IDD). The comment period for the proposal for a regulation amending Regulation (EU) 2016/1011 on low carbon benchmarks and positive carbon impact benchmarks consultations closes on July 20, 2018 while comment period on some other proposals closes on June 21, 2018.

    The following are the key features of the proposed measures:

    • The proposal for a unified EU classification system​ sets harmonized criteria for determining whether an economic activity is environmentally-sustainable. Step by step, EC will identify activities that qualify as "sustainable," taking into account the existing market practices and initiatives and drawing on the advice of a technical expert group that is being set up. 
    • The proposed regulation related to investor duties and disclosures will introduce consistency and clarity on how institutional investors, such as asset managers, insurance companies, pension funds, or investment advisers should integrate environmental, social, and governance (ESG) factors in their investment decision-making process. Exact requirements will be further specified through Delegated Acts, which EC will adopt at a later stage. 
    • The proposed rules on low-carbon benchmarks will create a new category of benchmarks, comprising the low-carbon benchmark or "decarbonized" version of standard indices and the positive-carbon impact benchmarks. This new market standard should reflect companies' carbon footprint and give investors greater information on an investment portfolio's carbon footprint. 
    • EC launched a consultation to assess how best to include ESG considerations into the advice that investment firms and insurance distributors offer to individual clients. The aim is to amend Delegated Acts under MiFID II and IDD. When assessing if an investment product meets their clients' needs, firms should also consider the sustainability preferences of each client, according to the proposed rules. 

     

    Related Links

    Comment Due Date: July 20, 2018

    Keywords: Europe, EU, Banking, Securities, Sustainable Finance, Taxonomy, Disclosure Requirements, EC

    Related Articles
    News

    SEC Finalizes Capital and Margin Requirements for Security-Based Swaps

    SEC adopted a package of rules and rule amendments to establish capital, margin, and segregation requirements for security-based swaps, under Title VII of the Dodd-Frank Act.

    August 22, 2019 WebPage Regulatory News
    News

    ECB Revises Prudential Provisioning Expectations for New NPEs

    ECB is revising its supervisory expectations for prudential provisioning of new non-performing exposures (NPEs) specified in the “Addendum to the ECB Guidance to banks on non-performing loans” (Addendum)

    August 22, 2019 WebPage Regulatory News
    News

    CFTC Proposes to Revise Information Collection on Margin Requirements

    CFTC is requesting comments on the burdens associated with certain aspects of the Margin Requirements for Uncleared Swaps for Swap Dealers and Major Swap Participants (final rule).

    August 21, 2019 WebPage Regulatory News
    News

    FASB to Delay Effective Date for Insurance Contracts Standard

    FASB issued a proposed Accounting Standards Update that would grant all insurance companies that issue long-duration contracts, such as life insurance and annuities, additional time to apply the standard that addresses this area of financial reporting.

    August 21, 2019 WebPage Regulatory News
    News

    EBA Publishes Phase 2 of Technical Package on Reporting Framework 2.9

    EBA published phase 2 of its technical package on the reporting framework 2.9, which includes validation rules, Data Point Model (DPM) data dictionary, and XBRL taxonomies.

    August 21, 2019 WebPage Regulatory News
    News

    FSB Publishes Responses to Its Consultation Related to SME Financing

    FSB published responses received to the consultation on a report on the evaluation of the effects of financial regulatory reforms on small and medium-sized enterprise (SME) financing.

    August 21, 2019 WebPage Regulatory News
    News

    APRA Revises Related Entities Standard for Banks

    APRA published a strengthened prudential standard APS 222 on associations with related entities, with the aim to mitigate contagion risk within banking groups.

    August 20, 2019 WebPage Regulatory News
    News

    EBA and ESMA Issue Joint Response to EC Letter on Crypto-Assets

    EBA and ESMA issued a joint response to the EC letter, from July 19, 2019, on crypto-assets.

    August 20, 2019 WebPage Regulatory News
    News

    FSB on Responses to Consultation on Wind-Down of Trading Portfolios

    FSB published responses received to the consultation on the solvent wind-down of the derivatives and trading book portfolio of a global systemically important bank (G-SIB).

    August 19, 2019 WebPage Regulatory News
    News

    FSB Publishes Responses to Consultation on Resolvability Disclosures

    FSB published responses received to the consultation on disclosures for resolution planning and resolvability of banks.

    August 19, 2019 WebPage Regulatory News
    RESULTS 1 - 10 OF 3681