ESMA publishes translations of its Guidelines on funds' names
The European Securities and Markets Authority (ESMA), the EU's financial markets regulator and supervisor, has today published the translations in all official EU languages of its Guidelines on funds' names using ESG or sustainability-related terms.
The Guidelines will start applying three months after this publication, i.e. on 21 November 2024.
Within two months of the date of publication of the Guidelines, i.e. on 21 October 2024, national competent authorities must notify ESMA whether they (i) comply, (ii) do not comply, but intend to comply, or (iii) do not comply and do not intend to comply with the guidelines.
The transitional period for funds existing before the application date will be six months after that date, i.e. 21 May 2025. Any new funds created on or after the application date should apply these Guidelines immediately.
The objective of the Guidelines is to ensure that investors are protected against unsubstantiated or exaggerated sustainability claims in fund names, and to provide asset managers with clear and measurable criteria to assess their ability to use ESG or sustainability-related terms in fund names. More here.
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