ESMA Guidelines On Funds' Names Using ESG Or Sustainability-related Terms : Application Dates

On 14 May 2024, the European Securities and Markets Authority (ESMA) published the final version of its new Guidelines on funds' names using ESG or sustainability-related terms (the Guidelines).

The purpose of the Guidelines is to specify the circumstances under which the funds' names using ESG or sustainability-related terms are unfair, unclear or misleading. Funds' names can have a significant impact on the investors' expectations and decisions. Unfair, unclear or misleading sustainability terms could expose them to greenwashing risks.

Furthermore, the Guidelines apply in relation to the obligation of the entities in scope to act honestly and fairly in conducting their business as well as the obligation that all the information included in marketing communications is fair, clear and not misleading.