EU – ESMA to launch Common Supervisory Action on MiFID II sustainability requirements
5th October 2023
On 3 October 2023, ESMA informed the public of the upcoming launch in 2024 of a Common Supervisory Action on MiFID II sustainability requirements with the National Competent Authorities.
According to the communication, the CSA will cover the following aspects:
• How firms collect information on their clients’ “sustainability preferences”;
• Which arrangements firms have put in place to understand and correctly categorise investment
• products with sustainability factors for the purpose of the suitability assessment;
• How firms ensure the suitability of an investment with respect to sustainability (including the use of a “portfolio approach”);
• How firms specify any sustainability-related objectives a product is compatible with as part of the target market assessment of the investment product.