Q&A · ESMA

Integration of sustainability within the MiFID II product governance requirements

Answered

Read the official text on the ESMA website(opens in a new tab)

AI-generated Summary

In a Commission answer, firms setting the negative target market of a product that does not consider sustainability factors must consider any clients' sustainability-related objectives the product is incompatible with, though depending on the product this may lead to no negative target market for that criterion.

Details

Reference	ESMA_QA_2129
Issuer	ESMA
Published	11 Mar 2024
Answered	11 Mar 2024
Submitted	11 Mar 2024
ESMA topics	Product governance

Provisions it relates to

Article 24 MiFID II · General principles and information to clients
MiFID II
ESMA rulebook
MiFIR (whole act)
Explicit reference

Documents it refers to

Delegated actIn forceExplicit reference
Commission Delegated Directive (EU) 2017/593 of 7 April 2016 supplementing Directive 2014/65/EU of the European Parliament and of the Council with regard to safeguarding of financial instruments and funds belonging to clients, product governance obligations and the rules applicable to the provision or reception of fees, commissions or any monetary or non-monetary benefits
European Commission · 31 Mar 2017 · EUR-Lex
AI summaryThe MiFID II Delegated Directive on safeguarding client financial instruments and funds (deposits, use of client assets, title transfer collateral, a single officer responsible, auditor reports), product governance duties for manufacturers and distributors, and inducements, including rules for independent advice, portfolio management and research. Since amended, including by Delegated Directives 2021/1269 (sustainability) and 2026/374 (research payment).