European Securities and Markets Authority (ESMA) Guidelines on funds’ names using ESG or sustainability-related terms (ESMA34-1592494965-657) – applicable from 21 November 2024
ESMA has issued Guidelines (ESMA34-1592494965-657) on funds’ names using environmental, social and governance (ESG) or sustainability-related terms.
The Financial Supervisory Authority (FIN-FSA) has confirmed that it will comply with the Guidelines. The FIN-FSA requires that funds (investment funds UCITS and alternative investment funds AIFs) using environmental, social and governance (ESG) or sustainability-related terms be compliant with the ESMA Guidelines.
The Guidelines are applicable to new funds from 21 November 2024, i.e. three months after the date of publication of the Guidelines on ESMA’s website in all EU official languages (21 August 2024). The Guidelines are applicable to existing funds six months after the date of application of the Guidelines, i.e. from 21 May 2025.
The FIN-FSA will assess the names of UCITS and AIFs in accordance with the ESMA Guidelines in connection with the processing of fund rules and marketing commencement notifications. In the future, the FIN-FSA will require funds subject to the Guidelines to add to rules of funds investment restrictions in accordance with the Guidelines. The Guidelines may also require changes to the rules of existing funds. The necessary applications for rule changes as well as changes to marketing notifications must be submitted to the FIN-FSA in good time before the end of the transition period.
The lists of terms included in the Guidelines are not exhaustive. Terms should always be assessed as to whether a term may correspond to the environmental, social and governance (ESG) or sustainability-related terms according to the Guidelines.
For further information, please contact
- Anna Mäkipeska, Senior Supervisor, telephone +358 9 09 183 5023 or anna.makipeska(at)fiva.fi
- Marko Hovi, Chief Supervisor, telephone +358 9 183 5404 or marko.hovi(at)fiva.fi
Appendices
- ESMA Guidelines (ESMA34-1592494965-657)
- Guidelines of the European Supervisory Authorities - www.fiva.fi