On Oct. 1, FINFSA will follow ESMA guidelines on ESG fund names.
FINFSA confirmed that it will follow ESMA's guidelines on fund names that use terms related to environment, society and good governance (ESG) or sustainability.
Requires guidelines are followed in funds (investment and alternative funds) whose names use terms related to environment, society, good governance or sustainability.
Follows ESMA Aug. 2024 published translations in all the official EU languages of its Guidelines on funds' names using ESG/sustainability-related terms, see #153820.
Application of ESMA Guidelines
FINFSA evaluates names of investment/alternative funds as per ESMA's instructions re processing of fund rules/marketing initiation notices after ESMA's issued instructions.
In the future, the FINFSA will require that the funds to which the guidelines apply add the investment restrictions in accordance with the guidelines to their rules.
The instructions may also require changes to the rules of existing funds.
The necessary rule change applications and changes regarding marketing notifications must be submitted to FINFSA well before the end of the transition period.
The lists of terms contained in the instructions are not exhaustive; term should always be evaluated in such a way that it can be equated with terms related to environment, society and good governance (ESG) or sustainability according to the guidelines.
Effectiveness
The instructions apply to new funds from Nov. 21, 2024, i.e. three months after they have been published on ESMA's website in official EU languages (Aug. 21, 2024).
Regulators
FINFSA
Entity Types
HF; IA; Inv Co
Reference
PR, 10/1/2024; ESMA34-1592494965-657; ESG
Functions
Compliance; C-Suite; Environment; Product Design; Social
