The EU has a comprehensive legal framework, in which many of the rules are regulatory and implementing standards (RTS and ITS, Level 2) that supplement or specify the EU Regulations and Directives (Level 1). In the last legislature, Level 1 legal acts empowered the Commission to adopt around 430 Level 2 measures. A high volume
The European Defence Bond Label: Mobilising Private Capital in Support of the European Defence Sector
Recent geopolitical developments have catalysed a reordering of European defence policy. The European Union has initiated significant efforts to revitalise and consolidate its defence and security industrial base through the Permanent Structured Cooperation, the European Defence Fund, the Strategic Compass for Security and Defence, the European Defence Industrial Strategy and the proposed European Defence Industry
FAQs – What US clients need to know about PISCES – a new secondary private stock market in the UK
- A key challenge for private companies is that, at early stages in their growth, there are no standardised ways for shareholders to realise their gains (e.g., where their shares have increased in value) or to
Out With a Whimper: BCBS Publishes Climate Disclosure Framework
On June 13, the Basel Committee on Banking Supervision (“BCBS”) published its framework for the disclosure of climate-related financial risks. The framework is entirely voluntary and has several notable changes from the 2023 proposal. In this brief Legal Update, we highlight those changes and discuss why the climate disclosure framework will have at best a
Refresher: EU Capital Requirements Directive 6 (“CRD6”) – What Cross-Border Financial Institutions Need to Know
Many US and other non-EU financial institutions which lend or undertake trade finance business on a cross border basis into Europe do so in reliance upon exemptions under local law. These exemptions typically permit these non-EU entities to undertake such business without the need to obtain authorisation or licence from the local regulator (the “
ESMA Publishes Guidelines on Establishing Harmonised Criteria for Use of ESG and Sustainability-Related Terms in Fund Names
On 14 May 2024, the European Securities and Markets Authority (“ESMA“) published its final report on “Guidelines on funds’ names using ESG or sustainability-related terms” (the “Guidelines“). The Guidelines aim to provide fund managers with clear and measurable criteria to assess their ability to use ESG and/or sustainability-related terms
UK Financial Conduct Authority Publishes Finalised Guidance on its Anti-Greenwashing Rule
On 23 April 2024, the UK’s Financial Conduct Authority (“FCA“) published its “Finalised non‑handbook guidance on the Anti‑Greenwashing Rule (FG/24/3)” (the “Guidance“). The FCA has published the Guidance to help in-scope firms understand and comply with the anti-greenwashing rule, which will come into effect on 31 May 2024.
Background
The anti-greenwashing rule is
UK Sustainability Disclosure Framework – FCA publishes final rules on Sustainability Disclosure Requirements and investment labels
On 28 November 2023, the UK’s Financial Conduct Authority published its “Sustainability Disclosure Requirements (“SDR“) and investment labels” policy statement (PS23/16) (the “Policy Statement”). The Policy Statement introduces a set of new rules aimed at tackling greenwashing, including investment product sustainability labels and restrictions on how terms like “ESG”, “green” and “sustainable”
The EU Corporate Sustainability Reporting Directive Is Upon Us – What Non-EU Companies Should Know And Do
The EU Corporate Sustainability Reporting Directive (“CSRD“) entered into force on 5 January 2023 and the associated European Sustainability Reporting Standards (“ESRS“) were adopted by the European Commission on 31 July 2023. Together, the CSRD and ESRS create detailed sustainability reporting requirements that will apply to a significant number of EU
Greenwashing: Navigating the Risk
The risk of an accusation of “greenwashing” is now an important concern for many companies. Greenwashing is an ill-defined concept but, nevertheless, is increasingly a source of litigation and regulatory scrutiny – with more of both expected. It carries with it reputational, regulatory and litigation risks for which companies should be prepared. Whilst the risks