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ARTICLE · 21 DECEMBER 2022

MiFID ESG Requirements Specified

ELVINGER HOSS PRUSSEN, société anonyme
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The MiFID legal framework is evolving in light of sustainability related requirements with respect to the definition of clients' sustainability preferences...

LuxembourgFinance and Banking
Elvinger Hoss Prussen
Elvinger Hoss Prussen

The MiFID legal framework is evolving in light of sustainability related requirements with respect to the definition of clients' sustainability preferences, on the one hand, and requirements relating to product governance, on the other hand.

The Grand-ducal Regulation of 30 May 2018 on, inter alia, product governance obligations, for MiFID firms was amended to transpose changes on this point introduced in MiFID II Delegated Directive (EU) 2017/593 (see the consolidated version of the Grand-ducal Regulation as modified on 27 July 2022 here).

As the CSSF underlines in a Communiqué of 24 November 2022, the amended rules regarding product governance apply from 22 November 2022 onwards so entities are now required to take into account sustainability factors when specifying the target markets for the financial instruments and structured deposits they manufacture and/or distribute. The European Securities and Markets Authority ("ESMA") is currently consulting the market

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