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ARTICLE · 29 SEPTEMBER 2022

ESG In The Banking Sector – Updated ESMA Guidelines On MiFID II Suitability Requirements

Arendt & Medernach
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Arendt & Medernach

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The 2022 Guidelines build on the text of a prior version issued by ESMA back in 2018 (the "2018 Guidelines"). They now specify how to integrate sustainability factors, risks and preferences into institutions' organisational

LuxembourgFinance and Banking
Clara Bourgi
Clara Bourgi
Philippe Dupont
Philippe Dupont
Glenn Meyer
Glenn Meyer
Emmanuelle Mousel
Emmanuelle Mousel
Marc Mouton
Marc Mouton
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ON 23 SEPTEMBER 2022, THE EUROPEAN SECURITIES AND MARKETS AUTHORITY ("ESMA") PUBLISHED ITS FINAL REPORT ON GUIDELINES ON MIFID II SUITABILITY REQUIREMENTS (THE "2022 GUIDELINES").

The 2022 Guidelines build on the text of a prior version issued by ESMA back in 2018 (the "2018 Guidelines"). They now specify how to integrate sustainability factors, risks and preferences into institutions' organisational requirements and operating conditions, and integrate the good and poor practices observed as a result of the 2020 Common Supervisory Action. In so doing, the 2022 Guidelines bring the 2018 Guidelines into alignment with the ESMA guidelines on certain aspects of the MiFID II appropriateness and execution-only requirements published on 3 January 2022 (ESMA35-43-2938), and take into account certain amendments introduced via the Capital Markets Recovery Package.

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