ESG: ESMA publishes translations of its guidelines on fund names

On 21 August 2024, the European Securities and Markets Authority (ESMA) published the translations of its "Guidelines on funds' names using ESG or sustainability-related terms" in all EU official languages.

We originally reported on the publication of the guidelines in May 2024, following ESMA's consultation on its proposals between November 2022 and February 2023.

For a more in-depth look at the key implications arising out of the guidelines, see our updated client note here.

What happens next?

Now the guidelines have been translated and published, the timeline for implementation begins. This means:

1. The guidelines will start applying three months after the date of publication, i.e. 21 November 2024

2. National competent authorities must notify ESMA by 21 October 2024 on whether they (i) comply, (ii) do not comply, but intend to, or (iii) do not comply or intend to do so.

Funds which were in existence before 21 November 2024 have until 21 May 2025 to either comply with the guidelines or change their name.  Funds launched on or after 21 November 2024 will need to comply with the guidelines immediately.