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

    BIS and Central Banks Experiment with GenAI to Assess Climate Risks

    A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe

    March 20, 2024 WebPage Regulatory News

    Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures

    Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.

    March 18, 2024 WebPage Regulatory News

    Singapore to Mandate Climate Disclosures from FY2025

    Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies

    March 18, 2024 WebPage Regulatory News

    SEC Finalizes Climate-Related Disclosures Rule

    The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.

    March 07, 2024 WebPage Regulatory News

    EBA Proposes Standards Related to Standardized Credit Risk Approach

    The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU

    March 05, 2024 WebPage Regulatory News

    US Regulators Release Stress Test Scenarios for Banks

    The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).

    February 28, 2024 WebPage Regulatory News

    Asian Governments Aim for Interoperability in AI Governance Frameworks

    The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.

    February 28, 2024 WebPage Regulatory News

    EBA Proposes Operational Risk Standards Under Final Basel III Package

    The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.

    February 26, 2024 WebPage Regulatory News

    EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS

    The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.

    February 23, 2024 WebPage Regulatory News

    ECB to Expand Climate Change Work in 2024-2025

    Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.

    February 23, 2024 WebPage Regulatory News
    RESULTS 1 - 10 OF 8957