AN UPDATE FROM LUXFLAG’S ASSOCIATE MEMBER GSK STOCKMANN
This paper reports on the current status, assessment and outlook regarding Sustainable Finance.
- The intention is to strengthen the financial sector by considering environmental, social and governance (“ESG”) factors in investment decisions.
- The EU Commission’s “Action Plan on Sustainable Finance” will bring changes of the Level 2 and Level 3 measures of MiFID II, IDD, the UCITS Directive and the AIFMD.
- Extensive disclosure obligations for almost all stakeholders in the financial sector.
- Financial market participants are required to make extensive adjustments to their corporate governance, particularly with regard to risk management requirements.
- Sales processes for financial instruments and insurance products must be examined: there are plans for new requirements for target market determination, suitability tests and suitability declaration.
- Final measures will be implemented as early as in Q3 2019.