Connect with us

Hi, what are you looking for?

Trending News

Investment Management body releases EU ESG guide for advisers

The Alternative Investment Management Association (AIMA) has published a guide to support financial advisers and asset managers in complying with the Sustainable Finance Disclosure Regulation (SFDR) that is set to come into force by March 2021.

The regulation is part of a legislative package proposed by the European Commission (EC) to move sustainable investment objectives to the core of the financial system of the European Union (EU). Financial market participants and financials advisers will be obliged to disclose how they integrate ESG factors into their investment and risk management processes from 10 March.

The guide explains: “The EU has taken decision action to support the transition to a low-carbon, more resource-efficient and sustainable economy. It aims to position the EU at the forefront of global efforts to build a financial system that supports sustainable growth.”

As part of the wider Sustainable Finance Action Plan, the EC has also set out key actions including the establishment of a detailed classification system – the Green Taxonomy – to encourage the adoption of a common language and labelling around financial products and the mandatory disclosures for market participants.

The latter, AIMA said will have a far-reaching impact and in many cases result in amendments to requirements for investment managers such as those running products in line with UCITS, alternative investmente fund management (AIFM), and Mifid directives, and non-EU investment managers who are classified as AIFMs may fall within scope.


The disclosure regulation is being implemented to improve transparency in the industry, mitigate greenwashing and to avoid divergent measures across EU member states, so the end-investor is able to compare standard information.

Mandatory disclosures include how the firm/product has used the Green Taxonomy to determine the suitability of its underlying investments, the environmental objectives the investments contribute to and take into account whether the investment is environmentally sustainable.

AIMA’s guide offers a full breakdown on how investment managers need to calculate the above, and a further explanation on where they may want to publish supportive information.

There is also a timeline for both the disclosure and taxonomy regulations, tables with detailed information on what firms need to disclose at the product level, a compliance checklist as well as detail on enhanced requirements for certain types of products.

Readers can view the full guide by clicking here.

For more insights on ESG investing, please click on

Source link

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

Trending News

via blogmaverick I wanted to get an understanding of what opening meant to businesses around Dallas. Were they opening? What precautions were they taking? Were...

Trending News

by Dr. Eowyn Washington State governor Jay Inslee is not only a rabid leftist (see “Washington Gov. Jay Inslee Signs Seven Anti Gun Bills...

Trending News

Canada Life has extended its segregated portfolio service (SPS) to a wider range of bonds. The SPS provides clients with access to an offering...

Trending News

by Tom Wigand Cross-posted from An ordained minister from Chicago. A former Black Panther. Supported by the Democrat Socialists of...