ESMA promotes proportionate supervision of MiFID II sustainability requirements

The European Securities and Markets Authority (ESMA) released a statement on its Common Supervisory Action (CSA) regarding sustainability integration. This CSA focused on how firms assess suitability and govern products in relation to sustainability. The statement outlines key findings from the supervisory exercise, indicating areas of focus. It presents interim supervisory expectations for gathering client sustainability preferences. Matching products to those preferences, employing the portfolio approach, and assessing target markets are also scrutinized. ESMA emphasizes the continued importance of MiFID II sustainability requirements. Recognizing framework revisions, ESMA encourages a proportionate supervisory approach by national authorities. Dialogue with firms is favored over immediate enforcement during the transition. ESMA will use the CSA results to update MiFID II Delegated Acts and ESMA Guidelines. The goal is to simplify the framework and improve its consistent application. ESMA aims to reduce undue burden on firms through these actions. Iris Hude, the Communications Officer, is the point of contact for further information.