The set of delegated regulations and directives in relation to the integration of sustainability risks and sustainability factors in the suitability assessment undertaken by the EU investment managers and financial advisers started to apply from 1-2 August 2022.

The core part of this package are the amendments to MiFID II which apply from 2 August 2022, except for the product governance requirements which will apply from 22 November 2022 (see our briefing).

On 31 January 2022, ESMA published a consultation paper with proposed amendments to the suitability guidelines to reflect these MiFID II changes. The consultation paper provided detailed guidance on how firms should implement new requirements (see our blog post). The final version of the guidelines have not yet been published but are expected in Q3 2022. The relevant financial market participants are, however, already expected to comply with MiFID II amendments.

On 8 July 2022, ESMA also published its consultation paper on the product governance guidelines. The consultation closes on 7 October 2022 with the final guidelines expected in Q1 2023 (i.e. also after the start of firms’ obligation to comply) (see our summary of this consultation paper).