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

    US Agencies Issue Several Regulatory and Reporting Updates

    The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.

    January 04, 2023 WebPage Regulatory News
    News

    ECB Issues Multiple Reports and Regulatory Updates for Banks

    The European Central Bank (ECB) published an updated list of supervised entities, a report on the supervision of less significant institutions (LSIs), a statement on macro-prudential policy.

    January 01, 2023 WebPage Regulatory News
    News

    HKMA Keeps List of D-SIBs Unchanged, Makes Other Announcements

    The Hong Kong Monetary Authority (HKMA) published a circular on the prudential treatment of crypto-asset exposures, an update on the status of transition to new interest rate benchmarks.

    December 30, 2022 WebPage Regulatory News
    News

    EU Issues FAQs on Taxonomy Regulation, Rules Under CRD, FICOD and SFDR

    The European Commission (EC) adopted the standards addressing supervisory reporting of risk concentrations and intra-group transactions, benchmarking of internal approaches, and authorization of credit institutions.

    December 29, 2022 WebPage Regulatory News
    News

    CBIRC Revises Measures on Corporate Governance Supervision

    The China Banking and Insurance Regulatory Commission (CBIRC) issued rules to manage the risk of off-balance sheet business of commercial banks and rules on corporate governance of financial institutions.

    December 29, 2022 WebPage Regulatory News
    News

    HKMA Publications Address Sustainability Issues in Financial Sector

    The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.

    December 23, 2022 WebPage Regulatory News
    News

    EBA Updates Address Basel and NPL Requirements for Banks

    The European Banking Authority (EBA) published regulatory standards on identification of a group of connected clients (GCC) as well as updated the lists of identified financial conglomerates.

    December 22, 2022 WebPage Regulatory News
    News

    ESMA Publishes 2022 ESEF XBRL Taxonomy and Conformance Suite

    The General Board of the European Systemic Risk Board (ESRB), at its December meeting, issued an updated risk assessment via the quarterly risk dashboard and held discussions on key policy priorities to address the systemic risks in the European Union.

    December 22, 2022 WebPage Regulatory News
    News

    FCA Sets up ESG Committee, Imposes Penalties, and Issues Other Updates

    The Financial Conduct Authority (FCA) is seeking comments, until December 21, 2022, on the draft guidance for firms to support existing mortgage borrowers.

    December 20, 2022 WebPage Regulatory News
    News

    FSB Reports Assess NBFI Sector and Progress on LIBOR Transition

    The Financial Stability Board (FSB) published a report that assesses progress on the transition from the Interbank Offered Rates, or IBORs, to overnight risk-free rates as well as a report that assesses global trends in the non-bank financial intermediation (NBFI) sector.

    December 20, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8697