Sustainability

Recent Articles

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    22/07/2024

    Commission Delegated Regulation on sustainability disclosures for STS securitisations enters into force

    IntroductionThe Commission Delegated Regulation, supplementing Regulation (EU) 2017/2402 (the “Securitisation Regulation”[1]), entered into force on 8 July 2024 (the “Commission Delegated Regulation” [2]). It provides for regulatory technical standards (“RTS”) on the content, methodologies and presentation of information related to the principal adverse impacts of the assets financed by the underlying exposures on sustainability factors for (a) simple, transparent and standardised (“STS”) non-ABCP traditional securitisation, and for (b) STS on-balance-sheet...
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    18/07/2024

    ESAs’ final reports on Greenwashing in the financial sector

    BackgroundMandated by the European Commission (the “EC”) in May 2022, the European Supervisory Authorities (“ESAs”) published their individual final report (the “Final Report”) on greenwashing risks and sustainability-related supervision, complementing the progress report issued in June 2023 (the “Progress Report”).While the Progress Report aimed to define greenwashing risks and outlines the key drivers and key areas of occurrence of greenwashing within the financial markets, the Final Report investigates further the role of supervision in the mitigation...
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    05/07/2024

    Financial Services Webinars On Demand

    View recordings of CMS financial services webinars available on demand.Webinars are a convenient way to stay informed and hear from our legal experts.Webinars On Demand
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    24/06/2024

    ESAs propose improvements to the SFDR and suggests introducing categories and/or sustainability indicators

    BackgroundOn 18 June 2024, the three European Supervisory Authorities (EBA, EIOPA, and ESMA, collectively known as the ESAs) published an opinion (the Opinion) on the evaluation of the Sustainable Finance Disclosure Regulation (SFDR). This Opinion was initiated by the ESAs themselves and was addressed to the European Commission.Through two consumer testing exercises, the ESAs observed that the SFDR could be perceived as “complex and difficult to comprehend”. Furthermore, its practical use as a classification tool for financial products could potentially lead to greenwashing and mis-selling...
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    20/06/2024

    Publication of CRD6/CRR3: countdown to implementation of third country branch requirements

    On 19 June 2024, the final texts of the EU banking package known as CRD6 and CRR3 were published in the Official Journal of the European Union. As covered in our earlier update, CRD6 introduces a new, EU-wide requirement for certain “core banking services” to be provided in the EU through a third country branch or local subsidiary. The package also introduces significant new prudential supervision requirements for third country branches in the EU.In addition to implementing the final parts of the global Basel III standards for banks in the EU, the package includes a range of EU-specific...
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    10/06/2024

    Financial Services Webinars On Demand

    View recordings of CMS financial services webinars available on demand.Webinars are a convenient way to stay informed and hear from our legal experts. Webinars On Demand
    Read more