ESMA: Proportionate Supervision of MiFID II Sustainability Requirements

ESMA's communication emphasizes a proportionate approach to supervising MiFID II ESG requirements, favoring dialogue with firms during the transition phase, except in cases of serious breaches. Firms and intermediaries should leverage this openness to refine the integration of sustainability into suitability and product governance processes, while preparing systems for future regulatory evolutions aiming at simplification and more consistent application.