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ESMA publishes Consultation on integrating sustainability risks and factors in MiFID II

ESMA Consultation on integrating sustainability risks and factors in MiFID II 

Background

  • Published on the 19th December 2018 with a closing date for responses by 19th February 2019, ESMA issued their consultation on integrating sustainability risks and factors in MiIFD II.

Impacts

  • This Consultation aims to:
    • reorient capital flows towards sustainable investment in order to achieve sustainable and inclusive growth;
    • assess and manage relevant financial risks stemming from climate change, resource depletion, environmental degradation and social issues; and
    • foster transparency and long-termism in financial and economic activity.
  • This CP covers technical advice on:
    • organisational requirements;
    • risk management;
    • product governance.
  • It also includes suggested amendments to the ESMA guidelines on MiFID II product governance requirements; and
  • the ESMA guidelines on certain aspects of the MiFID II suitability requirements.

Timeline

  • Consultation closes on 19th February 2019
  • ESMA advice to be finalised by 30th April 2019