The initiatives are part of the EU sustainable finance agenda, aimed at creating a more favourable environment for sustainable investments.
In its contribution Finance Watch highlighted that:
- The definition of ESG preference needs to be clarified and expanded.
- The clients should be informed about the trade-offs associated with each financial instrument (risk, return and ESG profile of the investment).
The draft amendments being in the scope of the consultation concern the following two delegated acts:
- Commission draft delegated regulation amending Regulation (EU) 2017/565 supplementing Directive 2014/65/EU as regards organisational requirements and operating conditions for investment firms and defined terms for the purposes of that directive.
- Commission draft delegated regulation amending Delegated Regulation (EU) 2017/2359 with regard to environmental, social and governance preferences in the distribution of insurance-based investment products.
The delegated acts shall enter into force only if no objection has been expressed either by the European Parliament or the Council within a period of three months from the notification.