Funds with names that refer to investments in with sustainable or ethical objectives are subject to new rules. The 50th edition of the FMA’s “Let’s talk about money” informs about them.
“Sustainable”, “ESG” or “green” sound great – but are all funds able to call themselves this? In its series for consumers “Let’s talk about money”, the Austrian Financial Market Authority (FMA) informs about new EU rules. The criteria that funds use for their investments are important for many investors. For some, the issue is purely one of performance, while others wish to explicitly invest their money in specific trends and thematic areas. The wording of the fund name is an important initial piece of information for potential investors. The European Securities and Markets Authority (ESMA) therefore now has stricter rules regarding the usage of certain terms. The FMA has adopted these rules into its supervisory practices.
Terms like “sustainable” (nachhaltig), “green” (grün) or “ESG” indicate that a fund, when selecting undertakings
considers certain environmental or social criteria. As a result, the funds may invest e.g. in manufacturers or windpower plants, clothing companies with fair wages or companies with strict rules against corruption. ESMA’s new rules prescribe what extent of the fund’s means are required to flow into such purposes, as well as the areas in which a fund containing such a designation in its name is not even allowed to invest in.
“Let’s talk about money – the duty of a fund name” is the 50th edition of the FMA’s information series for consumers that first appeared in January 2021. Over the last four years, it has covered a wide array of topics, including investment fraud, consumer loans, comparison portals, gold savings plans and many more. This year, the series has been extended by means of an Instagram channel and a podcast, to allow topics to be covered in greater depth and to be able to reach a broader target group. Collective consumer protection is an central objective for the FMA.
The latest edition of “Let’s talk about money” entitled “The duty of a fund name” as well as all editions of “Let’s talk about money” may be downloaded from the website https://redenwiruebergeld.fma.gv.at/en.
Detailed information about sustainable investment can be found on the FMA website. Follow “Reden wir über Geld” on Instagram too at @redenwiruebergeld or www.instagram.com/redenwiruebergeld. The “Reden wir über Geld” podcast can be found on all podcast providers.
Journalists may address further enquiries to
Boris Gröndahl (FMA Media Spokesperson)
Telephone: +43 (1) 249 59-6010
Mobile: +43 676 8824 9995
E-Mail: [email protected]