Europe: EU / UK regulatory roundup
A round up of recent regulatory developments in the EU and UK.
Sustainable finance is a key priority for the EU and is high on the regulatory agenda for asset managers and other financial institutions. The measures being introduced will have a lasting impact on investor behavior in the EU.
Following the adoption of the 2016 Paris agreement on climate change, the European Commission has expressed, in the ‘Action Plan: Financing Sustainable Growth,’ its intention to clarify fiduciary duties and increased transparency in the field of sustainability risks and sustainable investment opportunities.
To address these goals the Commission launched legislative measures aimed at:
EU co-legislators have agreed the first two proposals, and draft technical standards supplementing these measures will be produced by the ESAs during 2019.
ESG Insight is a dedicated online resource to help financial institutions and investors who are facing a growing requirement to assess, monitor and disclose the sustainability of their investments, and features:
Another important component of the EU’s initiative is amending the delegated acts under the UCITS Directive, AIFMD and MiFID II with regard to the integration of sustainability risks and sustainability factors.
UK regulatory authorities have already published papers on climate change and sustainable finance. Regulatory intervention is increasing, albeit within the existing supervisory framework.
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On July 16, 2020, the Court of Justice of the European Union (CJEU) published its decision in the landmark case Data Protection Commissioner v Facebook Ireland Ltd, Maximilian Schrems and intervening parties, Case C-311/18 (known as the Schrems II case).
On July 7, 2020, the Commission de Surveillance du Secteur Financier (CSSF) issued an FAQ document on Circular 02/77 concerning the protection of investors in case of NAV calculation errors and the correction of the consequences resulting from non-compliance with the investment rules applicable to undertakings for collective investment (the FAQ).