ESMA sets out guidance to National Competent Authorities to carry out supervisory actions on sustainability risks and disclosures
ESMA published on 31 May 2022 a Supervisory Briefing document on sustainability risks and disclosures in the investment management area* that is intended to enhance convergence among Member State competent authorities.
ESMA provides guidance to National Competent Authorities (NCAs) for the supervision of fund documentation and marketing material.
ESMA highlights that NCAs should verify the integration by AIFMs and UCITS managers of sustainability risks. As a reminder, from 1 August 2022, fund managers are required to integrate sustainability risks in their portfolio and risk management processes and overall governance structure, even where the fund manager does not offer sustainable funds.
NCAs remain fully responsible for determining which course of actions would be most effective and appropriate to mitigate the supervisory risks and regulatory breaches in investment management.