MiFID II Sustainability Preferences and the EET
2nd May 2022
A note from Lorcan Murphy on the European ESG Template (EET)
Effective August 2022, EU SFDR Article 6, 8 and 9 funds will be further assessed by the degree to which they are aligned to core measures of sustainability.
The enhancements to the EU MiFID target market rules will require fund distributors to gather more information from fund manufacturers to facilitate target market considerations to include ESG criteria, that is, the EU MiFID Sustainable Preferences.
The EU MiFID Sustainable Preferences focus on three options to be provided by fund distributors to their clients and prospects. The fund distributors will need to determine how they present the sustainability preference options to their end-clients and the fund manufacturers will need to provide standardized information aligned to these categories.
The file used to collect this information is the EET – European ESG Template. A large amount of new information is required, as well as some ESG data from the EMT (the European MiFID Template). It has approximately 580 data points per share class.
Through Acolin’s fully compliant Distribution Network Management service, Acolin provides access to a network of 3,000 global distributors comprising key fund platforms, banks and other distribution partners. As your only counterparty, we cost effectively manage contracts, data, documents, and commission calculations with your chosen distribution partners.
For existing Distribution Network Management clients, Acolin will assist with the EET process. We are in discussion with fund distributors, understanding their needs, and we are preparing to collect and control the dissemination of EET data templates for our asset manager clients to their selected fund distributors.
Acolin connects asset managers to opportunity through a holistic approach to fund distribution. Our integrated four-stage approach quickly solves complex fund distribution challanges across the fund distribution lifecycle.
Please contact us if you would like to find out how our services can boost your fund distribution strategy.