ESMA proposes changes and updates timeline for its Guidelines on funds’ names

Summary:

The European Securities and Markets Authority (ESMA) updates the status of its guidelines on Environmental, Social, and Governance (ESG) and sustainability-related terms in fund names. Due to the ongoing review of the AIFMD and UCITS Directives, ESMA has decided to postpone the adoption of the guidelines. The guidelines will now be approved and published in Q2 2024, applying three months after publication. Fund managers will be expected to comply with the guidelines for new funds and existing funds within six months of the date of application.

Key points:

ESMA postpones guidelines on ESG and sustainability-related terms in fund names
AIFMD and UCITS Directive reviews progress
Guidelines expected to be published in Q2 2024, with application date three months later
Fund managers to comply with guidelines for new funds and existing funds within six months