Sustainable Development Goal Funds – New Regulations Ahead?
After the financial crisis of 2008, legislators and regulators have established the finance industry as a fertile ground for regulation and this tendency is not about to stop. Hence, it is a good idea to pay attention when indicators for new regulations appear on the horizon. With this in mind, it is noteworthy that on 1st February 2024 the European Securities and Markets Authority (ESMA) has published a risk analysis entitled “Impact investing – Do SDG funds fulfill their promises?”. ESMA’s analysis might indicate where the regulators see future areas of regulation and therefore, it might be useful to take a closer look at it.