ESMA issues statement on MiFID II sustainability supervision. The European Securities and Markets Authority released a statement summarising the findings of its Common Supervisory Action (CSA) on how sustainability is incorporated into firms’ suitability assessments and product‑governance processes. Key themes identified include how client sustainability preferences are collected and treated, how products are categorized and matched to those preferences, the application of a portfolio approach, and target‑market assessments. ESMA stresses the importance of sustainability and urges firms to continue implementing the MiFID II requirements, noting that the CSA was carried out amid significant revisions to the sustainable‑finance framework. It calls on national competent authorities to adopt a proportionate supervisory approach, fostering dialogue during the transition period instead of prioritising enforcement, while still addressing clear breaches. Future updates to the Delegated Acts and related guidelines will aim to simplify the framework and support more consistent application.
© European Securities and Markets Authority (ESMA).
Summary adapted from ESMA materials available at https://www.esma.europa.eu .
This document has been drafted using material downloaded from ESMA’s website.
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