CSSF Circular 24/863 On Funds' Names Using ESG- Or Sus­tain­ab­il­ity-Re­lated Terms

On 21 October 2024, the Luxembourg Commission de Surveillance du Secteur Financier (CSSF) published a communication informing market participants of the publication of Circular 24/863, implementing ESMA's guidelines on funds' names using ESG- or sustainability-related terms (the Guidelines).

The CSSF reminded that the Guidelines apply to new funds from 21 November 2024 and that existing funds are subject to a six-month transition period until 21 May 2025.

Together with Circular 24/863, the CSSF outlined its supervisory expectations confirming that:

• the Guidelines are applicable regardless whether the funds are disclosing under Article 6, 8 or 9 SFDR;
• the names of the funds should not be misleading in light of the sustainability characteristics of the fund;