Sustainable Finance – The Green Revolution of (not only) the Financial Sector

AN UPDATE FROM LUXFLAG’S ASSOCIATE MEMBER GSK STOCKMANN
This paper reports on the current status, assessment and outlook regarding Sustainable Finance.

Executive Summary:

  • 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.

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