ESMA: Proportionate Supervision of MiFID II Sustainability Requirements
ESMA published the results of its Common Supervisory Action (CSA) on the integration of sustainability into MiFID II, promoting a proportionate supervisory approach for national authorities.
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ESMA's communication emphasizes a proportionate approach to supervising MiFID II ESG requirements, favoring dialogue with firms during the transition phase, except in cases of serious breaches. Firms and intermediaries should leverage this openness to refine the integration of sustainability into suitability and product governance processes, while preparing systems for future regulatory evolutions aiming at simplification and more consistent application.