What should you know about the EU Taxonomy?
Why a Green Taxonomy ? To face the growing interest of investors for financial products with a sustainability objective, the European Commission has published over the past few months new…
ESG preferences, SRI preferences and sustainability preferences: what is the difference?
A growing interest for sustainable investing Climate change, health crisis and social tension have increased the interest of professional and retail investors for more sustainable investments over the past 5…
MiFID 2 and the suitability test: how European regulation incorporates ESG preferences
Asking investors about their ESG preferences will soon become part of the routine for financial advisors.
How to assess client’s ESG preferences ?
Climate change, the health crisis and corporate governance concerns have increased awareness regarding the limits of our traditional economic model. People are now looking to have a positive impact on…
Sustainability preferences under MiFID II, what does it imply ?
A growing interest for sustainable investing Global warming, governance and social tensions have increased awareness among retail investors regarding the limits of our traditional economic model. Investors are now looking…
MiFID 2: what’s new in European regulation of markets in financial instruments in 2022
Risk appetite, financial situation, level of experience, and financial knowledge... Introduced in 2007, MiFID regulations require financial institutions to know the investor profile of their customers. The objective? To ensure that customers understand the financial products on offer and that they correspond as closely as possible to their expectations. Since then, MiFID (Markets in Financial Instruments Directive) regulations have been constantly enriched to offer ever greater transparency and protection to investors. Following the financial crisis, MiFID I was improved to become MiFID II: a strengthened regulation applicable to all investment products. Among the many changes made to the text, some concern the consideration of investors' ESG preferences. Thus, from August 2022, financial advisors will have to inquire about the impact sought by clients through their investments, to offer them adapted financial products. In other words, banks, asset management companies, and investment advisory firms must now capture clients' ESG preferences in their suitability questionnaires.