Legal & Regulatory News

IOSCO consults on sustainability-related regulatory and supervisory expectations in asset management industry

On 30 June 2021, the International Organisation of Securities Commissions (IOSCO) launched a consultation requesting feedback on proposed recommendations regarding sustainability-related regulatory and supervisory expectation in the asset management industry.

The consultation report focuses on investor protection issues and suggests that securities regulators consider setting regulatory and supervisory expectations of asset managers with regards to sustainability-related risks and investment opportunities. The report further aims to minimise the risk of greenwashing through increased transparency and consistency within sustainability-related disclosure, in turn allowing more comparability. It aims to achieve this through its five key recommendations in the following areas:

• asset manager practises, policies, procedures and disclosure;
• product disclosure;
• supervision and enforcement;
• terminology; and
• financial and investor education.

The deadline for feedback is 15 August 2021.

Click here to access the full consultation report.