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Directive and the Regulation. On 22 May 2014 ESMA has launched a consul- tation process for the implementation of MiFID II and MiFIR. The closing date for responses to both papers is Friday 1 August 2014.

YOU CAN FIND THE DIRECTIVE HERE.

YOU CAN FIND THE REGULATION HERE.

LUXEMBOURG LuxFLAG launched the first European ESG Label Background LuxFLAG supports the financing of sustainable development by providing clarity for investors through awarding Labels to investment funds. In addition to the newly launched Environment, So- cial and Governance (ESG) label, LuxFLAG already offers two thematic labels for microfinance and environment. What’s in there? On 21 May 2014, LuxFLAG launched the first European ESG label. This label will be granted to investment funds that meet criteria concerning Environment, Social and Governance objectives. The label is available to UCITS and AIFMD funds domiciled throughout Europe or in equivalent ju- risdictions. The qualification criteria include that: « The application must explain clearly how ESG criteria are integrated in the investment process; « The fund must have an exclusion policy; « 100% of the fund assets must be scrutinised against the ESG criteria; « The fund must publish its entire portfolio at least once per year; and that « The fund mandates an outside auditor to demon- strate compliance with the LuxFLAG criteria. The ESG Label is granted for a period of one year and is renewable. Investment funds will have to apply for the label and will need to provide information reviewed by an auditor. In addition, the awarding of the label is subject to a recom- mendation by LuxFLAG’s Eligibility Committee of Specialists. « The fund must be regulated;

ESMA's consultation on MiFID reforms Background The revised Markets in Financial Instruments Di- rective (MiFID II) and Regulation (MiFIR) as adopt- ed by the European Parliament on 14 April 2014 introduce changes that will have a large impact on the EU’s financial markets, such as advanced transparency requirements, enhanced trade re- porting obligations, new supervisory tools and im- proved retail investor protection. On 23 April 2014 the European Commission has sent a mandate to ESMA for advice on possible delegated acts. What’s in there? On 22 May 2014 ESMA has launched the consulta- tion process for the implementation of MiFID II and MiFIR. This is the first step in the process of trans- lating the MiFID II/MiFIR requirements into practi- cally applicable rules and regulations to address the effects of the financial crisis and to improve financial market transparency and strengthen in- vestor protection. In order to ensure that MiFID II achieves its objec- tives in practice, ESMA has published: « Consulting Paper on MiFID/MiFIR Technical Ad- vice – ESMA needs to deliver this advice to the European Commission by December 2014 and is therefore subject to a condensed consultation process for this paper; « Discussion Paper on MiFID/MiFIR draft RTS/ITS – this will provide the basis for a further con- sultation paper on the draft RTS/ITS which is expected to be issued on late 2014/ early 2015. The closing date for responses to both papers is Friday 1 August 2014. What’s next? ESMA will hold three public hearings on MiFID II:

FURTHER DETAILS ON THE HEARINGS CAN BE FOUND HERE.

THE CONSULTATION PAPER ON MIFID/MIFIR TECHNICAL ADVICE IS AVAILABLE HERE.

THE DISCUSSION PAPER ON MIFID/MIFIR DRAFT RTS/ITS IS AVAILABLE HERE.

MiFIDII/ MiFIR published in the EU Official Journal Background On 20 October 2011, the Commission adopted the proposal for a Directive on markets in financial in- struments repealing Directive 2004/39/EC of the European Parliament and of the Council. On 14 January 2014, the European Parliament and Council reached political agreement on a compro- mise text of MiFID II and MiFIR. This compromise text was adopted by the European Parliament on 15 April 2014 and by the Council on 13 May 2014. What’s in there? On 12 June 2014, the Directive on Markets in Fi- nancial Instruments repealing Directive 2004/39/ EC (2014/65/EU, MiFID II) and the Regulation on Markets in Financial Instruments (No 600/ 2014 MiFIR) have been published in the Official Journal. Please refer to our previous news on MiFID/MIFIR to get a global overview of the change to the cur- rent regime. What’s next? Both texts will enter into force on 2 July 2014 and will apply from 3 January 2017. On 16 May 2014, the European Commission sent a request for technical advice to EBA. The technical advice has to be submitted to the European Com- mission 6 months after the entry into force of the

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