The Autorité des Marchés Finances has decided to apply ESMA's Guidelines on funds' names
On 14 May 2024, the European Securities and Markets Authority (ESMA) published its final report on the Guidelines on funds’ names using ESG or sustainability-related terms.
In order to clarify specific aspects of the practical application of these guidelines at the request of several national competent authorities, on 13 December ESMA published Q&As with further details on:
- treatment of green bonds: funds with names containing terms related to environment, impact and sustainability will be able to invest in European Green Bonds (EuGBs) or any other green bonds as long as they finance green activities,
- definition of controversial weapons: this includes anti-personnel mines, cluster munitions, chemical weapons and biological weapons as defined in indicator 14 of table 1 appendix 1 of SFDR Delegated Act 2022/1288,
- commitment to “meaningfully investing in sustainable investments”: “meaningfully” will result in a threshold of 50% of sustainable investments.
In this context, the AMF decided on 16 December to apply ESMA’s Guidelines on funds’ names. To this end, it will publish by the end of the year the necessary adaptations of its Position-Recommendation DOC-2020-03 based on ESMA’s Guidelines on funds’ names and making the necessary adjustments on the marketing materials section.
These Guidelines have been in force since 21 November 2024 for new funds and will be applicable from 21 May for existing funds.
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