ESG in the banking sector – CSSF press release on the integration of sustainability considerations under MiFID II

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The MiFID II framework was recently amended to integrate sustainability considerations into banks’ organisational requirements, rules of conduct and product governance obligations

I. Integrating sustainability preferences in the suitability assessment

As from 2 August 2022
, pursuant to Commission Delegated Regulation 2021/1253 of 21 April 2021 amending Delegated Regulation 2017/565, banks and investment firms that provide investment advice or portfolio management to professional and retail clients (“Concerned Entities”) are required to consider clients’ sustainability preferences in their suitability assessment.

In that context, the CSSF published two press releases on 1 and 2 August 2022 reminding Concerned Entities of this requirement.

The CSSF is aware that the European Securities and Markets Authority (“ESMA”) is finalising the update of its Guidelines on certain aspects of the MiFID II suitability requirements.

The CSSF notes, however, that even in the absence of the finalised guidelines, it expects Concerned Entities:


II. Integrating sustainability factors in product governance requirements

The CSSF further notes that pursuant to Commission Delegated Directive (EU) 2021/1269 of 21 April 2021 amending Delegated Directive 2017/593, which will apply as of 22 November 2022, sustainability factors need to be integrated into product governance obligations.

The CSSF draws market players’ attention to the publication on 8 July 2022 of an ESMA Consultation Paper on the review of the Guidelines on MiFID II product governance requirements.


Download the press release

Luxembourg Newsflash – ESG banking- CSSF press release on the integration of sustainability considerations under MiFID II

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