(Finance) – The European Securities and Markets Authority (ESMA), the EU financial markets regulator and supervisor, will launch ajoint supervisory action (CSA) sui MiFID II sustainability requirements. The objective of the CSA, carried out with the competent national authorities (NCA), will be to evaluate the progress made by intermediaries in the application of the main sustainability requirements, which came into force in 2022 following the amendments to the MiFID II Delegated Acts.
In particular, the CSA will cover the following aspects: how companies collect information on the “sustainability preferences” of its customers; what provisions companies have put in place to understand and classify products correctly of investment with sustainability factors for the purposes of assessing suitability; how companies ensure the suitability of an investment with respect to sustainability (including the use of a “portfolio approach”); the way in which companies specify any sustainability-related objectives with which a product is compatible as part of the target market assessment of the investment product.