On 14 December 2023, the European Securities and Markets Authority (ESMA) issued an update regarding its draft guidelines on ESG and sustainability-related terms in fund names.
ESMA states that:
- The draft guidelines are expected to be approved and published in Q2 2024, subject to the timing of the publication of the AIFMD and UCITS Directive revised texts.
- The guidelines would apply three months after the date of their publication on the website in all EU official languages.
- Managers of new funds would be expected to comply with the guidelines in respect of those funds from the date of application of the guidelines. Managers of funds existing before the date of application of the guidelines should comply with the guidelines in respect of those funds six months from the application date.