The European Commission is continuing to implement its Sustainable Finance Action Plan (see EUROPE 11977). On Friday 4 January, it published two draft texts to ensure that investment firms and insurance distributors consider sustainable development considerations and preferences when advising their clients.
In practice, the provisions amend the delegated Regulation on information requirements for the distribution of insurance-based investment products and those applicable to investment firms to include an obligation to consider environmental, social and governance (ESG) preferences in the advisory process, both in the profile of clients and in the selection of products.
The Commission will only be able to formally adopt these two draft texts once the Regulation on transparency requirements for sustainable investment has been formally adopted by the two co-legislators, following the conclusion of the trilogue negotiations.
Nevertheless, the Commission is of the opinion that this early publication of the texts should enable investment firms and insurance distributors to prepare for these new requirements.
Once adopted, the delegated acts may enter into force within three months, unless the co-legislators object. (Original version in French by Marion Fontana)