Regulatory Alerts2024-10-21
CSSF Circular 24/863: Guidelines on Funds' Names Using ESG or Sustainability-Related Terms
The CSSF has issued Circular 24/863 to enforce ESMA guidelines requiring fund managers to ensure that names using ESG or sustainability-related terms are not unfair, unclear, or misleading. The document mandates that funds utilizing such terminology must meet an 80% investment threshold for relevant objectives and exclude specific controversial companies, with compliance required by 21 May 2025. These rules apply to UCITS, AIFs, and other collective investment undertakings to promote supervisory convergence and protect investors from misleading marketing communications.
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