Close to half of fund groups are yet to submit ESG Templates before MiFID II deadline, according to recent analysis from FE fundinfo.
The second Markets in Financial Instruments Directive (MiFID II) and Insurance Distribution Directive (IDD) require that any sustainability preferences of investors must be taken into account in the advisory process when assessing suitability for all their investment decisions from 2 August 2022.
Data from the fund data and technology company, FE fundinfo, shows that fund managers are still tackling this challenge a week before the deadline.
Its analysis demonstrates that fund managers are also facing challenges in creating the European ESG Template (EET) that should be provided at share class (ISIN) level, as well as securing timely distribution of their sustainability data to their fund distribution network. Fund managers that have not already commenced this process risk being non-compliant if they are not able to speed up their preparations.
FE fundinfo is supporting fund managers with the collection and creation of the EET, and the dissemination of EET required data fields and documents for EU financial products and market participants.
The European ESG Template (EET) was created and published by FinDatEx in March to enable the exchange between fund managers and fund distributors. Fund managers need to provide ESG data for all their products marketed in the EU to their fund distribution channels.
The template is made up of a total of 580 mandatory, conditional and optional fields, with additional country-specific requirements making things more complex at a fund and underlying individual share class level.
