New transparency obligations for investment funds in environmental matters

On the  10th of March it came  into force the obligation for investment funds to adapt and update the information in their prospectuses for investors in the sense regulated by EU Regulation 2019/2088 of the Parliament and the Council of  the  27th of  November 2019.

The mentioned EU regulation is directly applicable to all EU Member States due to its regulatory nature, and therefore also to Spain. Introduces new requirements in the financial markets in relation to the integration of sustainability risks and the analysis of adverse effects in this area regarding to financial products.

According to the mentioned above, the National Securities Market Commission (CNMV) has already set up a simplified procedure so that investment funds (technically Collective Investment Institutions or “CIIs”) can include in their prospectuses the environmental information required by the aforementioned EU Regulation, and relating to:

  1. a) The integration of sustainability risks into investment decisions and the results of the assessment of the potential impact of sustainability risks on the performance of CIIs.
  2. b) The main adverse impacts of investment decisions on sustainability factors.

Once the management company of the investment fund has transferred this information to the CNM for the prospectus modification for the investors, the latter will review it so that, if it agrees, a certificate can be requested due the modification regarding only to these disclosure requirements on sustainability criteria and not to the other conditions transferred to investors.

EU Regulation 2019/2088 of the Parliament and of the Council of the 27th of November 2019 is a regulatory consequence of the 2030 Agenda adopted by the United Nations General Assembly on the 25th of September 2015 and to which the EU is also committed since the conclusions of the European Council on the 20th of June 2017.

The standard requires financial market participants and financial advisors to disclose to investors and institutions specific information on how they deal with the integration risks and the analysis of adverse environmental and sustainability impacts. Ultimately, it seeks to promote the transition towards a more sustainable economy, one that fights climate change and, as the Regulation itself states “resource efficient and circular… essential to ensure the long-term competitiveness of the EU economy“.


David Devesa Rodríguez.

Founding partner – CEO of Devesa & Calvo Abogados

Rate this post
← Go back to blog