ESMA consultation on new ESG "sustainability preferences" regime - what you need to know
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The new "sustainable preferences" regime (introduced via changes to MiFID II) comes into force on 2 August 2022. In advance of that, ESMA has issued a consultation as to how the regime should work in practice.
In theory, this would apply in relation to both retail and institutional clients - e.g. retail clients of wealth managers and private banks, as well as institutional clients of EU managers.
Overall, the new regime intends to put sustainability considerations at the heart of the financial system, and "turbo charge" the European Commission's efforts to redirect private capital into the "greening" of the EU, plus avoid greenwashing.
This briefing gives further detail on the ESMA consultation.