Markets in Financial Instruments Directive II

ESG
:   
Disclosure
March 1, 2024

MiFID II stands for the "Markets in Financial Instruments Directive II." It's a law in the European Union (EU) that regulates companies providing services linked to financial instruments (like stocks, bonds, units in collective investment schemes, and derivatives) and the places where those instruments are traded (like stock exchanges). Think of it as a set of rules to make financial markets more transparent, safe, and fair for everyone, especially for individual investors. Here are some key points:

  • Transparency: MiFID II makes sure that trading, including prices and costs, is more transparent. This means investors can see more clearly what they are buying, how much it costs, and the market conditions.
  • Protection for Investors: It puts a lot of emphasis on protecting investors. Companies need to ensure that they are acting in the best interests of their clients, providing them with clear information, and warning them about risks.
  • Testing Financial Products: Before a company can sell a financial product to a client, they must check if it's suitable or appropriate for that client, based on their financial situation and investment goals.
MFID in Detail

Explore more insights

See All Insights
Disclosure

Benchmarking

Benchmarking ESG peers enhances a company's sustainability efforts by identifying best practices, improving performance, ensuring regulatory compliance, and increasing transparency.
Disclosure

CSRD Scope Considerations

The Corporate Sustainability Reporting Directive (CSRD) introduces rigorous sustainability reporting requirements for companies in the European Union (EU) and abroad if they meet certain criteria. The CSRD mandates detailed ESG disclosures based on European Sustainability Reporting Standards (ESRS) developed by EFRAG. When evaluating CSRD scope considerations, it's crucial to understand who needs to comply and what the requirements entail.
Disclosure

IDD (Insurance Distribution Directive)

The IDD is about setting EU-wide rules for selling insurance products. It came into effect in October 2018.
Disclosure

European Sustainability Reporting Standards (ESRS)

The European Sustainability Reporting Standards (ESRS) are a set of standards developed under the mandate of the Corporate Sustainability Reporting Directive (CSRD) by the European Financial Reporting Advisory Group (EFRAG). The ESRS aims to provide a unified framework for sustainability reporting within the European Union, enhancing the consistency, comparability, and reliability of sustainability information provided by companies.
Disclosure

Green Hushing

Green hushing is a term that refers to the practice of downplaying or concealing the environmental impact of certain activities or products by emphasizing their perceived or claimed green or eco-friendly attributes.
Disclosure

SEC and ESG

Based on the guidance from the SEC and its staff to date, companies should consider topics related to material impacts caused by climate change, among other things, in preparing their SEC filings and providing appropriate disclosures.