On 21 September 2022, the European Commission announced its plan to ensure complete and timely transposition of EU directives.

The Commission is adopting a package of infringement decisions due to the absence of communication by Member States of measures taken to transpose particular EU directives into national law (referred to as ‘non-communication infringements’).  In the financial services space the package of infringement decisions includes:

  • Commission Delegated Directive (EU) 2021/1269 which clarifies that sustainability factors and sustainability related objectives have to be taken into account by investment firms in their product oversight and governance process – The Commission is sending letters of formal notice to Belgium, Germany, Hungary, Spain, Slovenia  since they have not transposed the Delegated Directive by the deadline of 22 August 2022.
  • Commission Delegated Directive (EU) 2021/1270 which requires all fund managers to integrate sustainability risks in their portfolio. In particular, the Delegated Directive imposes obligations on UCITS management companies to integrate sustainability risks in the management of UCITS – Belgium and Spain have not transposed the Delegated Directive into national law by 1 August 2022 and are receiving a letter of formal notice.

The Member States have two months to reply to the letters of formal notice and complete their transposition, or the Commission may decide to issue a reasoned opinion.