As the year draws to a close, it is worth taking a look at new regulations at the start of the year: As of January 1, the new Regulatory Technical Standards (RTS) on the EU Disclosure Regulation will apply to financial market participants and financial advisors. With the Disclosure Regulation, which already came into force in March 2021, respective companies must prove how sustainable their products are, the extent to which ESG criteria, i.e. ecological and social standards and good corporate governance, are observed and pursued and which strategies are applied here.
The Disclosure and Taxonomy Regulation applies to financial market participants, especially in the fund sector, but also to insurance companies offering insurance investment products, credit institutions and investment services companies providing portfolio management, as well as providers of pension products and financial advisors in these areas.
Important points of the disclosure regulation remained unclear and left questions unanswered. This is now to be remedied by the technical standards, which were already adopted in August 2022. These will once again specify with more detail what information is to be disclosed about individual financial products, how it is to be disclosed and, in particular, how information is to be disclosed about how significant environmental impacts are avoided.
From January 1, 2023, the Regulatory Technical Standards on the Disclosure Regulation must be taken into account. However, this will not be the end of the story – the EU Commission has already initiated a review to revise the RTS, with a particular focus on financial products that invest in nuclear energy and gas.
More information can be found here with further links to more detailed information.
