CSSF Update: ESMA Guidelines On Funds' Names Using ESG Or Sustainability-Related Terms

Purpose and Scope

On 21 October 2024, the Commission de Surveillance du Secteur Financier (the "CSSF") published a communiqué¹ containing Circular CSSF 24/863² (the "Circular"). This communiqué follows on from the communiqué³ published on 21 August 2024, announcing the translation of the ESMA Guidelines on funds' names using Environmental, Social and Governance ("ESG") or sustainability-related terms into all the official languages of the European Union (the "Guidelines").

In summary, the Guidelines place an obligation on UCITS management companies (including any UCITS which do not have a UCITS management company), Alternative Investment Fund Managers (including internally managed AIFs, EuVECA, EuSEF and ELTIF and money market fund managers) and competent authorities to act honestly, fairly and ensure all information, including fund documentation and marketing communications, are fair, clear and not misleading.