what your bank advisor should now ask

From Tuesday, your bank advisor will have to take into account your choices for a sustainable investment as part of their advisory mission. But concretely, what does it mean?

Starting August 2nd, your advisor will ask you some questions about your sustainability preferences. It will have to recommend suitable investments if sustainability is an important investment goal for you. This new rule, put in place by the European Commission, concerns all banking advisors and will apply to asset management advisors with the status of financial investment advisor (CIF) from January 1, 2023.

What questions do I have to answer?

In order to know your preferences, your banking advisor should be interested in the values ​​you want to defend. More precisely, you will have to ask if you want support a particular environmental goal such as the preservation of biodiversity; invest your savings in some areas of activity such as renewable energies o it completely excludes certain sectors of activity such as fossil fuels; or agree that part of your investments finance these activities. It is also asking if you want to make sure that your investment does not have no negative impact on the fight against climate change.

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The advisor will establish your preferences according to 3 axes, reports the Autorit des Marchés Financiers (AMF): the proportion of your money invested in activities. considered ecologically sustainable from the European classification called Taxonomy (or taxonomy); that has invested in sustainable investments in the sense of the European Regulation on the publication of information on sustainability in the financial services sector (SFDR in English) and, finally, taking into account the negative effects of the your investment (greenhouse carbon emissions, hazardous waste, infringement). of human rights, etc.).

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The taxonomy is based on six environmental objectives: :

1- Climate change mitigation

2- Adapting to climate change

3- Sustainable use and protection of aquatic and marine resources

4- Pollution prevention and reduction

5- Transition to a circular economy (The circular economy consists of the production of goods and services in a sustainable way limiting the consumption and waste of resources and the production of waste).

6- Protection and restoration of biodiversity and ecosystems

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If you decide to express sustainability preferences, your advisor must take this into account before proposing a financial investment. Note: in the event that no investment available to your adviser meets your sustainability preferences, which could happen initially, he will suggest you to adapt your initial preferences, which must be recorded in writing, to be able to recommend an investment to you, underlines the AMF.

Since January 1 of this year, any new life insurance or contract FOR must contain at least one solidarity fund, one SRI fund and one Greenfin fund. This new European measure therefore comes in addition to an already present offer that tends to diversify and become more democratic. If until today, the rescuers themselves have to ask to invest in this type of investment, this time it is bank advisors who have to be proactive.

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