ESMA to launch Common Supervisory Action on MiFID II sustainability requirements

Summary:

The European Securities and Markets Authority (ESMA) will launch a Common Supervisory Action (CSA) with National Competent Authorities (NCAs) in 2024 to assess the integration of sustainability in firms' suitability assessment and product governance processes. The goal is to ensure consistent application of EU rules and protect investors. The CSA will cover aspects such as firms' collection of clients' sustainability preferences, product categorization, suitability assessments, and target market assessments. The initiative aims to enhance the protection of investors and promote consistent application of EU rules, in line with ESMA's objectives.