Regulatory Alerts2025-12-10
ESG Update 2: Sustainability Provisions in POG and Suitability Assessment: What the AFM Expects from You
The Dutch Authority for the Financial Markets (AFM) issued this update following 2024-2025 research into compliance with sustainability provisions under Product Oversight & Governance (POG) and the suitability assessment. The document provides detailed guidance and good practices for financial firms to ensure accurate target group determination, transparent sustainability information, and neutral collection of client preferences. It highlights that while firms are making progress, further improvements are needed in defining negative target groups, explaining ESG concepts clearly, and rigorously matching client preferences with suitable products.
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