Fund Management

The Board of Supervisors of the European Securities and Markets Authority (ESMA) has appointed the following individual to serve as chair of its Investment Management Standing Committee (IMSC):

·         Gabriela Figueiredo Dias, Chair of the Comissão do Mercado de Valores Mobiliários (CMVM) of Portugal.

The appointment is effective immediately and will run until 30 October 2020.

The standing committees are expert groups drawn from ESMA staff and the national competent authorities for securities markets regulation in the Member States, and are responsible for the development of policy in their respective areas.

The European Securities and Markets Authority (ESMA) has today launched three public consultations on sustainable finance initiatives to support the European Commission’s (EC) Sustainability Action Plan in the areas of securities trading, investment funds and credit rating agencies (CRAs).

The first two consultations seek stakeholders’ input on draft technical advice for the integration of sustainability risks and factors into the Markets in Financial Instruments Directive II (MiFID II) (securities trading) and the Alternative Investment Fund Managers Directive (AIFMD) and the Undertakings in Collective Investment in Transferable Securities (UCITS) Directive (investment funds). While the third consults on CRA guidelines aimed at improving the quality and consistency of disclosures of environmental, social and governance (ESG) factors when considered as part of a credit rating action.

The consultations focus on environmental, social and good governance considerations with regards to investment firms, investment funds and CRAs. The draft advice and proposed guidelines touch upon organisational requirements, operating conditions, risk management, conflicts of interest, product governance and disclosure requirements.

In order to ensure consistency, ESMA’s draft advice was developed in cooperation with the European Insurance and Occupational Pensions Authority (EIOPA), which has received a similar mandate regarding Solvency II and the Insurance Distribution Directive (IDD).

Next steps

The EC requested ESMA to provide technical advice on the integration of sustainability risks and factors in the UCITS Directive, AIFMD and MiFID II by 30 April 2019. ESMA, along with the consultations, will hold an open hearing on 4 February 2019 and will use the consultation feedback to finalise its draft advice to the EC. 

The Consultation Paper on credit ratings has a three-month consultation period with a view to publishing the final report before the end of July 2019.

Please provide your responses to each of the consulation paper(s) you wish to provide input on:

  1. Consultation on integrating sustainability risks and factors in MiFID II
  2. Consultation on integrating sustainability risks and factors in the UCITS Directive and AIFMD
  3. Consulation on Disclosure Requirements Applicable to Credit Ratings

Consultation on integrating sustainability risks and factors in the UCITS Directive and AIFMD

Responding to this paper  

ESMA invites comments on all matters in this paper and in particular on the specific questions summarised in the Annex. Comments are most helpful if they: 

1. respond to the question stated; 
2. indicate the specific question to which the comment relates; 
3. contain a clear rationale; and 
4. describe any alternatives ESMA should consider. 

ESMA will consider all comments received by 19 February 2019.