Adjustment needed
27.08.2024 – Articles
As the implementation of period of ESMA’s guidelines on fund names using ESG or sustainability-related terms comes into play – applicable from November 21st 2024 – Sustainable Fitch has found that 11% of the entities it has rated do not meet the exclusion criteria.
Implementation: new funds and existing funds
ESMA published the translations in all official EU languages of the guidelines on August 21st 2024, kicking off the three month implementation period.
This means that funds established on or after November 21st must apply the guidelines immediately. For existing funds there is a six month transition period, which ends on May 21st 2025.
An update from Dechert advises:
Notwithstanding the above, the application of the Guidelines in any particular case is dependent on the approach taken by the national competent authorities, which must notify ESMA by 21 October 2024 whether they (i) comply, (ii) do not comply, but intend to comply, or (iii) do not comply and do not intend to comply with the Guidelines.