ESA Joint Committee · sfdr-76 Final

How is the envisaged product classification in case of a multi-option product (MOP) that comprises only one investment option that (partially) invests in line with the Taxonomy Regulation? Would the e

Regulation
SFDR
Answered
2022-11-17
Answer provided by
ESAs (EBA, ESMA, EIOPA)
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Question

How is the envisaged product classification in case of a multi-option product (MOP) that comprises only one investment option that (partially) invests in line with the Taxonomy Regulation? Would the entire MOP classify as a financial product falling under Article 5-6 TR?

Answer

A MOP falls under Article 5 of the TR when all of the underlying options offered have sustainable investment as their objective and at least one investment option invests in an economic activity that contributes to an environmental objective within the meaning of Article 2 (17) SFDR. In that case, the product templates included in Annex III and V of the Delegated Regulation (EU) 2022/1288 need to be completed with the related Taxonomy disclosures only for those underlying options that make investments in environmentally sustainable economic activities. A MOP falls under Article 6 of the Taxonomy Regulation when at least one underlying option offered promotes environmental characteristics.
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This Q&A is published by ESA Joint Committee (EBA, ESMA, EIOPA) and is non-binding. It does not constitute legal advice. Updated weekly from official ESA sources.

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