ESG changes to MiFID II product governance regime

Overall, the changes are intended to put “sustainability considerations” at the heart of the EU financial system. They are also intended to “turbo charge” the European Commission’s efforts to redirect private capital into efforts to “green” the EU,  plus avoid greenwashing. One strand of the changes being made is a requirement for relevant firms to incorporate certain ESG considerations into their product governance arrangements. 

This briefing gives further detail on this new requirement and draft ESMA guidance.