Commission Delegated Regulation (EU) 2021/1253 of 21 April 2021 amending Delegated Regulat…
as it stood on 2021-04-21, permalink: /eu-eurlex/32021r1253/2021-04-21--7acc1de6f8bdec9b4fcb86f18a27b9a4ea578317454d913e98387feee554260d
Official publisher wording state selected for 2021-04-21.
This is the consolidated version dated 2021-04-21. Its interval on Lex's
publisher-version axis is publisher version 2021-04-21 → 2021-08-01; that is not a claim about
entry into force or application.
Text included, per-article reading view.
Deterministic extraction of the verbatim retrieved document; each displayed provision carries its own hash and anchor.
© European Union, 1998-2026. Reuse permitted with attribution under Commission Decision 2011/833/EU. Consolidated texts have no legal effect; only acts published in the Official Journal are authentic.
art_1
#art_1
Article 1
Delegated Regulation (EU) 2017/565 is amended as follows:
| (1) | in Article 2, the following points (7), (8) and (9) are added:‘(7)“sustainability preferences” means a client’s or potential client’s choice as to whether and, if so, to what extent, one or more of the following financial instruments shall be integrated into his or her investment:(a)a financial instrument for which the client or potential client determines that a minimum proportion shall be invested in environmentally sustainable investments as defined in Article 2, point (1), of Regulation (EU) 2020/852 of the European Parliament and of the Council(1);(b)a financial instrument for which the client or potential client determines that a minimum proportion shall be invested in sustainable investments as defined in Article 2, point (17), of Regulation (EU) 2019/2088 of the European Parliament and of the Council(2);(c)a financial instrument that considers principal adverse impacts on sustainability factors where qualitative or quantitative elements demonstrating that consideration are determined by the client or potential client;(8)“sustainability factors” means sustainability factors as defined in Article 2, point (24), of Regulation (EU) 2019/2088;(9)“sustainability risks” means sustainability risks as defined in Article 2, point (22), of Regulation (EU) 2019/2088.(1) Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June 2020 on the establishment of a framework to facilitate sustainable investment, and amending Regulation (EU) 2019/2088 (OJ L 198, 22.6.2020, p. 13)." (2) Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability-related disclosures in the financial services sector (OJ L 317, 9.12.2019, p. 1).’;" |
|---|---|
| ‘(7) | “sustainability preferences” means a client’s or potential client’s choice as to whether and, if so, to what extent, one or more of the following financial instruments shall be integrated into his or her investment:(a)a financial instrument for which the client or potential client determines that a minimum proportion shall be invested in environmentally sustainable investments as defined in Article 2, point (1), of Regulation (EU) 2020/852 of the European Parliament and of the Council(1);(b)a financial instrument for which the client or potential client determines that a minimum proportion shall be invested in sustainable investments as defined in Article 2, point (17), of Regulation (EU) 2019/2088 of the European Parliament and of the Council(2);(c)a financial instrument that considers principal adverse impacts on sustainability factors where qualitative or quantitative elements demonstrating that consideration are determined by the client or potential client; |
| (a) | a financial instrument for which the client or potential client determines that a minimum proportion shall be invested in environmentally sustainable investments as defined in Article 2, point (1), of Regulation (EU) 2020/852 of the European Parliament and of the Council(*1); |
| (b) | a financial instrument for which the client or potential client determines that a minimum proportion shall be invested in sustainable investments as defined in Article 2, point (17), of Regulation (EU) 2019/2088 of the European Parliament and of the Council(*2); |
| (c) | a financial instrument that considers principal adverse impacts on sustainability factors where qualitative or quantitative elements demonstrating that consideration are determined by the client or potential client; |
| (8) | “sustainability factors” means sustainability factors as defined in Article 2, point (24), of Regulation (EU) 2019/2088; |
| (9) | “sustainability risks” means sustainability risks as defined in Article 2, point (22), of Regulation (EU) 2019/2088. |
| (2) | in Article 21, paragraph 1 is amended as follows:(a)the second subparagraph is replaced by the following: ‘Investment firms shall take into account sustainability risks when complying with the requirements set out in this paragraph.’;(b)the following subparagraph is added: ‘When complying with the requirements set out in this paragraph, investment firms shall take into account the nature, scale and complexity of the business of the firm, and the nature and range of investment services and activities undertaken in the course of that business.’; |
|---|---|
| (a) | the second subparagraph is replaced by the following: ‘Investment firms shall take into account sustainability risks when complying with the requirements set out in this paragraph.’; |
| (b) | the following subparagraph is added: ‘When complying with the requirements set out in this paragraph, investment firms shall take into account the nature, scale and complexity of the business of the firm, and the nature and range of investment services and activities undertaken in the course of that business.’; |
| (3) | in Article 23(1), point (a) is replaced by the following:‘(a)establish, implement and maintain adequate risk management policies and procedures which identify the risks relating to the firm’s activities, processes and systems, and, where appropriate, set the level of risk tolerated by the firm. In doing so, investment firms shall take into account sustainability risks;’; |
|---|---|
| ‘(a) | establish, implement and maintain adequate risk management policies and procedures which identify the risks relating to the firm’s activities, processes and systems, and, where appropriate, set the level of risk tolerated by the firm. In doing so, investment firms shall take into account sustainability risks;’; |
| (4) | Article 33 is replaced by the following:‘Article 33Conflicts of interest potentially detrimental to a client(Article 16(3) and Article 23 of Directive 2014/65/EU)For the purposes of identifying the types of conflict of interest that arise in the course of providing investment and ancillary services or a combination thereof and whose existence may damage the interests of a client, including his or her sustainability preferences, investment firms shall take into account, by way of minimum criteria, whether the investment firm or a relevant person, or a person directly or indirectly linked by control to the firm, is in any of the following situations, whether as a result of providing investment or ancillary services or investment activities or otherwise:(a)the firm or that person is likely to make a financial gain, or avoid a financial loss, at the expense of the client;(b)the firm or that person has an interest in the outcome of a service provided to the client or of a transaction carried out on behalf of the client, which is distinct from the client’s interest in that outcome;(c)the firm or that person has a financial or other incentive to favour the interest of another client or group of clients over the interests of the client;(d)the firm or that person carries on the same business as the client;(e)the firm or that person receives or will receive from a person other than the client an inducement in relation to a service provided to the client, in the form of monetary or non-monetary benefits or services.’; |
|---|---|
| (a) | the firm or that person is likely to make a financial gain, or avoid a financial loss, at the expense of the client; |
| (b) | the firm or that person has an interest in the outcome of a service provided to the client or of a transaction carried out on behalf of the client, which is distinct from the client’s interest in that outcome; |
| (c) | the firm or that person has a financial or other incentive to favour the interest of another client or group of clients over the interests of the client; |
| (d) | the firm or that person carries on the same business as the client; |
| (e) | the firm or that person receives or will receive from a person other than the client an inducement in relation to a service provided to the client, in the form of monetary or non-monetary benefits or services.’; |
| (5) | in Article 52, paragraph 3 is replaced by the following:‘3. Investment firms shall provide a description of:(a)the types of financial instruments considered;(b)the range of financial instruments and providers, analysed per each type of instrument according to the scope of the service;(c)where relevant, the sustainability factors taken into consideration in the selection process of financial instruments;(d)when providing independent advice, how the service provided satisfies the conditions for the provision of investment advice on an independent basis, and the factors taken into consideration in the selection process used by the investment firm to recommend financial instruments, including risks, costs and complexity of the financial instruments.’; |
|---|---|
| (a) | the types of financial instruments considered; |
| (b) | the range of financial instruments and providers, analysed per each type of instrument according to the scope of the service; |
| (c) | where relevant, the sustainability factors taken into consideration in the selection process of financial instruments; |
| (d) | when providing independent advice, how the service provided satisfies the conditions for the provision of investment advice on an independent basis, and the factors taken into consideration in the selection process used by the investment firm to recommend financial instruments, including risks, costs and complexity of the financial instruments.’; |
| (6) | Article 54 is amended as follows:(a)in paragraph 2, point (a) is replaced by the following:‘(a)it meets the investment objectives of the client in question, including the client’s risk tolerance and any sustainability preferences;’;(b)paragraph 5 is replaced by the following:‘5. The information about the investment objectives of the client or potential client shall include, where relevant, information about the length of time for which the client wishes to hold the investment, his or her preferences regarding risk taking, his or her risk tolerance, the purpose of the investment and in addition his or her sustainability preferences.’;(c)paragraph 9 is replaced by the following:‘9. Investment firms shall have in place, and be able to demonstrate that they have in place, adequate policies and procedures to ensure that they understand the nature features, including costs and risks of investment services and financial instruments selected for their clients, including any sustainability factors, and that they assess, while taking into account cost and complexity, whether equivalent investment services or financial instruments can meet their client’s profile.’;(d)paragraph 10 is replaced by the following:‘10. When providing the investment service of investment advice or portfolio management, an investment firm shall not recommend or decide to trade where none of the services or instruments are suitable for the client.An investment firm shall not recommend financial instruments or decide to trade such instruments as meeting a client’s or potential client’s sustainability preferences when those financial instruments do not do meet those preferences. The investment firm shall explain to the client or potential clients the reasons for not doing so and keep records of those reasons.Where no financial instrument meets the sustainability preferences of the client or potential client, and the client decides to adapt his or her sustainability preferences, the investment firm shall keep records of the decision of the client, including the reasons for that decision.’;(e)in paragraph 12, the first subparagraph is replaced by the following:‘12. When providing investment advice, investment firms shall provide a report to the retail client that includes an outline of the advice given and that explains how the recommendation provided is suitable for the retail client, including how the recommendation meets the client’s investment objectives, his or her personal circumstances with reference to the investment term required, the client’s knowledge and experience, the client’s attitude to risk his or her capacity to sustain losses and his or her sustainability preferences.’;(f)in paragraph 13 a new subparagraph is added: ‘The requirements to meet the sustainability preferences of clients or potential clients, where relevant, shall not alter the conditions laid down in the first subparagraph.’. |
|---|---|
| (a) | in paragraph 2, point (a) is replaced by the following:‘(a)it meets the investment objectives of the client in question, including the client’s risk tolerance and any sustainability preferences;’; |
| ‘(a) | it meets the investment objectives of the client in question, including the client’s risk tolerance and any sustainability preferences;’; |
| (b) | paragraph 5 is replaced by the following:‘5. The information about the investment objectives of the client or potential client shall include, where relevant, information about the length of time for which the client wishes to hold the investment, his or her preferences regarding risk taking, his or her risk tolerance, the purpose of the investment and in addition his or her sustainability preferences.’; |
| (c) | paragraph 9 is replaced by the following:‘9. Investment firms shall have in place, and be able to demonstrate that they have in place, adequate policies and procedures to ensure that they understand the nature features, including costs and risks of investment services and financial instruments selected for their clients, including any sustainability factors, and that they assess, while taking into account cost and complexity, whether equivalent investment services or financial instruments can meet their client’s profile.’; |
| (d) | paragraph 10 is replaced by the following:‘10. When providing the investment service of investment advice or portfolio management, an investment firm shall not recommend or decide to trade where none of the services or instruments are suitable for the client.An investment firm shall not recommend financial instruments or decide to trade such instruments as meeting a client’s or potential client’s sustainability preferences when those financial instruments do not do meet those preferences. The investment firm shall explain to the client or potential clients the reasons for not doing so and keep records of those reasons.Where no financial instrument meets the sustainability preferences of the client or potential client, and the client decides to adapt his or her sustainability preferences, the investment firm shall keep records of the decision of the client, including the reasons for that decision.’; |
| (e) | in paragraph 12, the first subparagraph is replaced by the following:‘12. When providing investment advice, investment firms shall provide a report to the retail client that includes an outline of the advice given and that explains how the recommendation provided is suitable for the retail client, including how the recommendation meets the client’s investment objectives, his or her personal circumstances with reference to the investment term required, the client’s knowledge and experience, the client’s attitude to risk his or her capacity to sustain losses and his or her sustainability preferences.’; |
| (f) | in paragraph 13 a new subparagraph is added: ‘The requirements to meet the sustainability preferences of clients or potential clients, where relevant, shall not alter the conditions laid down in the first subparagraph.’. |
art_2
#art_2
Article 2
This Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.
It shall apply from 2 August 2022.
Provenance and validity dates, identifier, hash
| as of | 2021-04-21 → this publisher state was selected |
| publisher state | publisher version 2021-04-21 → 2021-08-01 publisher-asserted |
| type | REG_DEL Commission Delegated Regulation (EU) 2021/1253 of 21 April 2021 amending Delegated Regulation (EU) 2017/565 as regards the integration of sustainability factors, risks and preferences into certain organisational requirements and operating conditions for investment firms (Text with EEA relevance) |
| language | en |
| published | 2021-04-21 |
| lex_id | eu-eurlex:32021r1253:2021-04-21--7acc1de6f8bdec9b4fcb86f18a27b9a4ea578317454d913e98387feee554260d |
| record sha256 | f5748fd43728868f2ac2f486fcc319dc39a3c0eaa7ef4c0b1aa85365648754ca |
New here? What am I looking at?
This is an official consolidated text: the original act with later amendments merged by EUR-Lex for the date shown above.
The consolidation date is not an entry-into-force or application date. It identifies a publisher wording state. The authentic legal acts remain those published in the Official Journal; Lex preserves the consolidated wording, source and hashes as a reading and comparison aid.
Each displayed provision carries its own hash so you can verify that Lex served the indexed text unchanged, here is how.
| tier | A, publisher-supplied consolidated wording-state dates |
| history begins | publisher |
| index built | 2026-08-15T09:01:06Z · corpus e9c4df0981c855855a1a28218cf086ddeb5bb691 |
| stamp signature | valid (ECDSA-P256) |