In addition to the proposals outlined in the Action Plan, in July 2018 the European Securities and Markets Authority (ESMA) and the European Insurance and Occupational Pensions Authority (EIOPA) were mandated by the Commission to provide technical advice - by 20 April 2019 - assisting the Commission with potential amendments to, or the introduction of, delegated acts regarding the integration of sustainability risks and sustainability factors under:
- Solvency II
- MiFID2 and
- The Insurance Distribution Directive (IDD)
ESMA consultations - UCITS, AIFMD, MIFID and CRAs
In light of the call for advice, in December 2018 ESMA published a consultation paper, “On integrating sustainability risks and factors in the UCITS Directive and AIFMD”.
The consultation paper set out proposed changes in a number of areas under the UCITS and AIFMD framework to ensure that UCITS Management Companies and AIFMs capture sustainability risks in their due diligence process and risk management.
The consultation period closed on 19 February 2019.
This was also accompanied by similar consultations in respect of MiFID II and Credit Rating Agencies. These closed on 19 February 2019 and 19 March 2019 respectively.
On 03 May 2019, ESMA published its Final Report containing technical advice to the Commission regarding UCITS and AIFMD and MIFID II. The Final Report regarding Credit Rating Agencies is expected to be published in July 2019.
EIOPA consultation - Solvency II and IDD
In November 2018, EIOPA published a consultation paper, “On Technical Advice on the integration of sustainability risks and factors in the delegated acts under Solvency II and IDD”.
The consultation period closed on 30 January 2019.
On 03 May 2019, EIOPA published its Final Report containing technical advice to the Commission regarding Solvency II and IDD.
The Commission will now consider the advice submitted to it by ESMA and EIOPA and decide whether to amend existing level 2 measures or to adopt new delegated acts.