On 9 December 2019, the Official Journal of the European Union published the Regulation (EU) 2019/2088 of the European Parliament and of the Council passed on 27 November 2019 on sustainability‐related disclosures in the financial services sector (the Disclosure Regulation).

This regulation lays down harmonised rules for financial market participants and financial advisers on transparency with regard to the integration of sustainability-related information with respect to financial products and will affect, MiFID firms, AIFMs, UCITS management companies. The Disclosure Regulation requires additional pre-contractual sustainability-related disclosures to be made to investors. Affected financial market participants will have a number of additional requirements including but not limited to explaining how sustainability risks are integrated into the investment decision making process (including risk management and due diligence process) or investment advice.   

The Disclosure Regulation will enter into force on the twentieth day following its publication in the Official Journal (29 December 2019) and will apply from 10 March 2021.

The Disclosure Regulation can be found here.