Following an 18 month wait since the publication of the European
Securities and Markets Authority's
("ESMA") consultation on funds'
names using ESG or sustainability-related terms, we now have
ESMA's final report containing the applicable
guidelines ("Guidelines"). This has
brought some clarity in terms of application dates and the general
criteria to be applied, although there are a number of areas where
further guidance or clarification at the EU or domestic level would
assist in mitigating the implementation challenges.
The Guidelines do not provide an exhaustive list of terms that
will bring a fund within scope. The conditions applied where
certain terms are used in funds' names are set out in the table
below.
