Regulatory Alerts2025-05-01
ESG Update 1: Complying with Sustainability Legislation: What the AFM Expects from You
The Dutch Authority for the Financial Markets (AFM) issued its first ESG update to outline supervisory priorities for 2025 and 2026 regarding sustainability compliance for consumer financial products. The regulator demands that firms ensure sustainability claims are accurate and non-misleading, SFDR disclosures are complete and comparable, and Product Oversight & Governance (POG) policies prevent the sale of non-sustainable products to sustainable investors. Additionally, the AFM requires rigorous suitability assessments to match investment products with clients' actual sustainability preferences, supported by ongoing market research and a coordinated European supervisory action.
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