On July 6, 2020, ISDA and AFME submitted their joint response to the European Commission’s consultation on the Delegated Acts (DAs) under MiFID II meant to introduce changes to suitability requirements and integrate sustainability risks across product governance, operating conditions, risk management and organisational requirements. In the response, the Associations recommend an appropriately staggered timetable for implementing the DAs due to the significant challenges that the proposed sequencing could pose for firms. The associations also note that availability of relevant and reliable environment, social and governance (ESG) data from issuers remains a significant issue, and will continue to remain so for some time, which will impede the process of identifying to what extent a product meets a client’s sustainability preferences. The Associations are still reviewing the definition of sustainability preferences in the DAs, particularly with respect to how Article 8 and 9 of the Disclosure Regulation should be applied to financial instruments, and they plan to engage further with the Commission on this issue.
Documents (1) for Joint ISDA and AFME Response to EC Consultation on MIFID II Draft Delegated Acts
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Expanding Legal Agreement Coverage in the CDM
This paper examines the recent extension of the Common Domain Model (CDM)1 to represent two of the most significant, and previously undeveloped, areas of its legal agreement model: umbrella agreements and contract amendments. Umbrella agreements are widely used to document...
ISDA Omnibus Canadian Representation Letter
On September 2, ISDA published the Omnibus Canadian Representation Letter, which combines previously published representation letters drafted to assist firms in compliance with Canadian trade reporting, business conduct, regulatory margin and clearing classification rules. The Omnibus Canadian Letter is designed...
Joint Response on Cross-margining
On August 31, ISDA and FIA submitted a letter to the US Commodity Futures and Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) on the agencies’ joint request for comment on the implementation of portfolio margining and cross-margining...
Accounting for Carbon Credits: Latest Developments
This paper updates and extends the analysis set out in ISDA’s October 2023 paper on accounting for carbon credits. While preserving the original focus on the accounting treatment of voluntary carbon credits (VCCs) and compliance carbon credits (CCCs), it expands...