The European Banking Authority (EBA) has issued updated Guidelines on product oversight and governance for retail banking products, adding clearer requirements for products with environmental, social and governance (ESG) features. The revisions aim to reduce the risk of consumers being misled by greenwashing and to ensure firms design and distribute ESG‑related products with robust standards. Key changes clarify ESG and greenwashing considerations across the product lifecycle, including internal control functions, target market identification, distribution channels, and the information provided to distributors. The Guidelines also include non‑substantive updates to align with the 2020 EBA Founding Regulation, the EBA Capital Requirements Directive guidance, and third‑party risk management rules. The updated guidelines will be published in all 24 EU languages and become effective on 11 January 2027.
© European Banking Authority.
Summary adapted from material on the EBA website (https://www.eba.europa.eu ).
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