"Sustainable finance” adds ESG (environmental, social and governance) factors to financial services with the aim of contributing to the transition to a more sustainable society.
Financial service providers face three challenges in this regard:
Strategically, a financial services provider will have to deal with the question of whether it wants to proactively address the issue and seize opportunities or wait as a "follower" until regulatory changes or customer preferences in particular lead to an adjustment of the business model.
The effects of existing, planned or emerging legal and regulatory changes must be analysed and may lead to adjustments where necessary. Existing self-regulation can serve as a blueprint, in particular the initiatives of the Swiss Bankers Association (SBA) and the Asset Management Association Switzerland (AMAS). Financial service providers that already voluntarily commit to these guidelines or implement their content are signalling their willingness to be transparent and are also strengthening their credibility with investors and clients.
The operational implementation at company level and, if necessary, at product level and at the point of sale integrates sustainable finance into the value chain. In addition to the investment process, risk management in particular must be subjected to a thorough review and adjustments made where necessary. Particular attention should then be paid to avoiding "greenwashing".
Regulatory & Compliance Financial Services helps you to fulfil the expectations of clients, investors and supervisory authorities.
Preventing greenwashing is becoming one of the key tasks for ensuring credibility and trust in the financial market.
What asset managers of collective assets need to know about the new regulations.
Since the end of the transition period on 1 January 2024, member institutions of the Swiss Bankers Association (SBA) have had to take into account the "Guidelines for financial service providers on the integration of ESG-preferences and ESG-risks into investment advice and portfolio management" in their new client business - for existing clients, the transition period runs until 1 January 2025. Below, we inform you about the main changes and outline the possible need for action for other financial service providers such as asset managers.
