Regulatory Alerts2021-04-21
Added · Updated
Commission Delegated Regulation (EU) 2021/1253 amending Delegated Regulation (EU) 2017/565 on sustainability integration for investment firms
The European Commission amends Delegated Regulation (EU) 2017/565 to require investment firms to integrate sustainability factors, risks, and client preferences into their organizational requirements and operating conditions. The amendments introduce definitions for sustainability preferences, risks, and factors, and mandate that firms consider sustainability risks in risk management policies, conflict of interest identification, and suitability assessments. Investment firms are prohibited from recommending financial instruments as meeting a client's sustainability preferences if they do not, and must maintain records of such decisions and client adaptations. This Regulation enters into force on the twentieth day following its publication and applies from 2 August 2022.