Regulatory Alerts2021-08-02
Added · Updated
Commission Delegated Regulation (EU) 2021/1253 amending Delegated Regulation (EU) 2017/565 as regards the integration of sustainability factors, risks and preferences into certain organisational requirements and operating conditions for investment firms
This Regulation amends Delegated Regulation (EU) 2017/565 to require investment firms to integrate sustainability risks, factors, and client preferences into their organisational requirements and operating conditions. It introduces definitions for sustainability preferences, factors, and risks, and mandates that firms consider sustainability risks in risk management, conflict of interest identification, and product governance. Investment firms must align investment advice and portfolio management with client sustainability preferences, document reasons for non-alignment, and provide retail investors with reports detailing how recommendations match their sustainability preferences. The Regulation enters into force on the twentieth day after publication and applies from 2 August 2022.
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