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ARTICLE · 20 NOVEMBER 2024

CSSF Circular 24/863: Integration Of ESMA Guidelines On ESG Fund Naming Practices

On 21 October 2024, the Commission de Surveillance du Secteur Financier (CSSF) issued Circular 24/863, (the "Circular") which addresses the use of Environmental, Social, and Governance (ESG) and sustainability-related terms in fund names.

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On 21 October 2024, the Commission de Surveillance du Secteur Financier (CSSF) issued Circular 24/863, (the "Circular") which addresses the use of Environmental, Social, and Governance (ESG) and sustainability-related terms in fund names. This follows the European Securities and Market Authority's (ESMA) guidelines (Ref. ESMA34-1592494965-657) and applies to all UCITS, Alternative Investment Funds (AIFs), and other regulated funds such as EuVECA, EuSEF, ELTIF, and money market funds (MMF) (the "Guidelines").

The Circular emphasizes the need for clarity, fairness, and accuracy in the naming of investment funds using ESG or sustainability-related terms, which comes into force on 21 November 2024. For existing funds, a six-month transition period applies, with a final compliance deadline of 21 May 2025.

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