ESMA guidelines for fund names mandatory for all investment funds

BVI informs that ESMA's guidelines on the use of sustainability-related fund names will be mandatory for all investment funds from 21 May 2025. The guidelines have already been binding for new issues since 21 November 2024.

The ESMA guidelines categorise the terms used in fund names into six categories: Environmental, Social, Governance, Sustainability, Transition and Impact. Their use is linked to specific requirements. ESMA is thus creating de facto product categories that provide an EU-wide minimum standard for sustainability.

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