European Commission publishes sustainable finance legislation

Jun 22, 2020

 

On 8 June, the European Commission published six initiatives – draft delegated Acts – on sustainable finance in banking and financial services. These Acts are open for feedback until July 6, 2020. These Draft Acts form part of the EU’s Action Plan on Sustainable Finance, which 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.

 It aims to shift capital flows away from activities that have negative social and environmental consequences, and direct finance towards economic activities that have genuine long-term benefits for society. The Draft Acts are:

 

 

The Delegated Acts will enter into force 20 days after being published in the Official Journal, after which firms will be given 12 months to implement the change. The proposed changes to MiFID II, AIFMD, the UCITS Directive, Solvency II and the IDD will have implications for investment firms, fund managers and insurers.

Chartered Accountants Ireland’s Public Policy Team will continue to update members on the implication of these changes on their clients and business partners.