ESG: ESMA Guidelines on fund names – Top 10 talking points

As we have already reported, on 14 May 2024, ESMA published its Final Report containing guidelines on fund names using ESG- or sustainability-related terms.

August 2024 update: ESMA published the translations of the guidelines on 21 August 2024. This means that the Guidelines will apply from 21 November 2024. The client note has been updated to reflect this.

Our client note looks at the top 10 questions which come out of the guidelines:

1. Who do the ESMA Guidelines apply to?

2. What funds do the ESMA Guidelines apply to?

3. Do the ESMA Guidelines apply to non-EU firms and non-EU funds?

4. When will the ESMA Guidelines apply?

5. In what circumstances do the ESMA Guidelines apply?

6. What are the requirements where a fund uses an ESG or sustainability-related term in its name?

7. How should the 80% threshold be calculated?

8. How should the exclusions be applied?

9. How do the ESMA Guidelines compare with the UK FCA's Naming and Marketing Rules?

10. What should firms be doing now?