On 2 August 2021, there was published in the Official Journal of the EU, Commission Delegated Directive (EU) 2021/1269 of 21 April 2021 amending Delegated Directive (EU) 2017/593 as regards the integration of sustainability factors into the product governance obligations.

Commission Delegated Directive 2017/593 supplements MiFID II with regard to, amongst other things, product governance obligations.

Delegated Directive 2021/1269 amends Commission Delegated Directive 2017/593 in a way that means investment firms manufacturing and distributing financial instruments should consider sustainability factors in the product approval process of each financial instrument and in the other product governance and oversight arrangements for each financial instrument that is intended to be distributed to clients seeking financial instruments with a sustainability-related profile.

The Delegated Directive enters into force on 22 August 2021.

Member States are expected to adopt the Delegated Directive by 21 August 2022 and apply provisions from 22 November 2022.