MiFID II Delegated Directive: Sustainability Factors in Product Governance
This Directive aims to integrate sustainability factors into the product governance obligations for financial instruments. This Directive amends Commission Delegated Directive (EU) 2017/593, requiring investment firms that manufacture and distribute financial instruments to take sustainability factors into account in their product approval process and product governance arrangements. Investment firms shall specify the target market in sufficient detail for clients seeking products with sustainability-related features. Sustainability factors shall be presented in a transparent manner so that distributors can provide relevant information to clients. This Directive covers identification of the target market, assessment of product compatibility, ongoing review and governance arrangements.
Timeline
- 16 Aug 2021Entry into force
- 21 Aug 2022AuthoritiesDeadline for Member States to adopt legislation
- 22 Nov 2022AuthoritiesDate of application of Member State provisions
Key facts
- Reference
- Directive (EU) 2021/1269
- Adopted
- 21 Apr 2021
- Published
- 27 Jul 2021
- Status
- In force
- Topic
- Sustainable Finance
- Industries
- Financial Services
Main compliance requirements
Paid members only
The main compliance requirements, applicability questions and penalties are available in the ZC Smart Compliance Hub. Paid members and clients can sign in to the Hub to view them.
Related legislation
- Amends Commission Delegated Directive (EU) 2017/593. This Directive also refers to Regulation (EU) 2019/2088 of the European Parliament and of the Council (on sustainability-related disclosures in the financial services sector), Directive 2014/65/EU (Markets in Financial Instruments Directive) and Directive 2002/92/EC.
Official sources
Commission Delegated Directive (EU) 2021/1269 amending Delegated Directive (EU) 2017/593 as regards the integration of sustainability factors into the product governance obligations