On 8 January 2025, the EU Platform on Sustainable Finance (PSF) published a draft report and launched a call for feedback on proposed updates to the EU taxonomy. This includes revisions to the Climate Delegated Act and new technical screening criteria. Stakeholders are invited to submit feedback by 5 February 2025.
Regulation Round Up
Welcome to the UK Regulation Round Up, a regular bulletin highlighting the latest developments in UK and EU financial services regulation.
Key developments in December 2024:
20 December:
FCA Handbook: The Financial Conduct Authority (‘‘FCA’’) published Handbook Notice 125, setting out changes to the FCA Handbook made by the FCA board on
Sustainability-related disclosures for all funds proposed by EU Platform on Sustainable Finance
On 17 December 2024, the EU Platform on Sustainable Finance (the “Platform”), an advisory body to the European Commission (the “Commission”), has published a briefing note to the Commission, outlining their proposals for a new categorization system for sustainable finance products (the “Proposal”). This is intended to be in replacement of the current regime under
ESMA Consults on Open-Ended Loan Originating AIFs
On 12 December 2024, the European Securities and Markets Authority (“ESMA”) published a consultation paper (“Consultation”) on draft regulatory technical standards relating to open-ended loan originating AIFs under the revised Alternative Investment Fund Managers Directive (EU/2024/927) (“AIFMD 2”).
Purpose of the Consultation
AIFMD 2 stipulates that loan-originating AIFs should
Clock starts for EU ESG Ratings Regulation
On 12 December 2024, the EU Regulation on ESG Ratings Providers and their transparency and integrity was published in the Official Journal of the European Union (the “Regulation”).
It means that the Regulation will enter into force on 2 January 2025 (20 days after publication in the Official Journal of the European Union) and will
“Meaningfully Investing in Sustainable Investments” Clarified for ESMA ESG Fund Name Guidelines
On 13 December 2024, the European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has published Q&As with further details on three specific aspects of the practical application of their Guidelines on funds’ names using ESG or sustainability-related terms (the Guidelines).
The Q&As cover:
- “meaningfully investing in sustainable investments”
Regulation Round Up
Welcome to the Regulation Round Up, a regular bulletin highlighting the latest developments in UK and EU financial services regulation.
Key developments in November 2024:
29 November
Financial Crime: The Financial Conduct Authority (“FCA”) published a policy statement (PS24/17) setting out changes to its Financial Crime Guide.
FCA Handbook: The FCA published Handbook
Luxembourg CSSF Introduces First Sanction Regarding SFDR
On 15 October 2024, the Luxembourg Commission de Surveillance du Secteur Financier (the “CSSF”) imposed a fine of EUR 56,500 against a fund manager, Aviva Investors Luxembourg S.A. (the “Manager”), with regards to the Sustainable Finance Disclosure Regulation (EU) 2019/2088 (the “SFDR”). This marked the CSSF’s first ever sanction
UK Change in Control Regime – New Guidance published by the FCA and PRA
Background
In the United Kingdom, prior approval must be obtained from the Financial Conduct Authority (the “FCA”) or the Prudential Regulation Authority (the “PRA”) prior to becoming a “controller” of an FCA or PRA authorised firm (an “Authorised Firm”).
Such approval is obtained via a “change in control” filing
European Commission publishes FAQs on CSRD and SFDR
On 13 November 2024, the European Commission published 90 frequently asked questions (‘‘FAQs’’) with the aim of enhancing stakeholders’ understanding and compliance with the sustainability reporting requirements under the Corporate Sustainability Reporting Directive ((EU) 2022/2464) (‘‘CSRD’’) and the Sustainable Finance Disclosure Regulation ((EU) 2019/2088) (‘‘SFDR’’).