Better Finance Feedback to the European Commission Consultation on obligations for investment firms to advise clients on social and environm

06 July 2020

BETTER FINANCE welcomes the introduction of requirements for firms providing investment advice and portfolio management to ask clients about their non-financial objectives and preferences.

This is an important step forward for the integration of sustainability in the fiduciary duties of financial advisers. However, we recommend some specific amendments in order to avoid:

• green-washing practices in the “advice” and sale of sustainable financial products,
• misinterpretations of sustainability factors of investments,
• and non-intelligible questions to savers, which is not allowed by MIFID II (requirement of clear and understandable information)

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