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ESG 3.1 Application of ESG 4 and ESG 5 to firms

Application

ESG 3.1.1R

1This chapter applies to all firms.

Application of ESG 4 and ESG 5

ESG 3.1.2R

1ESG 4 and ESG 5 apply as follows:

  1. (1)

    ESG 4.1.1R(1) and ESG 4.3.1R apply to all firms.

  2. (2)

    In addition to the rules set out at ESG 3.1.2R(1), ESG 4.1.16R to ESG 4.1.19R apply to a distributor who distributes a sustainability product or a recognised scheme, including an ETF that is a recognised scheme, to retail clients.

  3. (3)

    Subject to ESG 3.1.3R, all the rules and guidance in ESG 4 and ESG 5 apply to a manager of a type listed in column 1 of the table at ESG 3.1.2R(4) in relation to the sustainability in-scope business described in column 2 which either:

    1. (a)

      is carried out from an establishment maintained by the manager in the United Kingdom; or

    2. (b)

      to the extent that it is not carried out from an establishment maintained by the manager in the United Kingdom, is carried on in relation to a UK AIF.

  4. (4)

    This table belongs to ESG 3.1.2R(3).

    Column 1: type of manager

    Column 2: sustainability in-scope business

    UK UCITS management company

    Managing a UK UCITS

    ICVC that is a UCITS scheme without a separate management company

    Managing a UK UCITS

    Full-scope UK AIFM

    Managing an AIF

    Small authorised UK AIFM

    Managing an AIF

Exemption from ESG 5.6 for managers of assets below threshold

ESG 3.1.3R

1A manager is exempt from the disclosure requirements under ESG 5.6 if and for as long as the assets under administration or management in relation to its sustainability in-scope business amount to less than £5bn calculated as a 3-year rolling average on an annual assessment.

Delegation of activities

ESG 3.1.4R

1Where a firm delegates its activities to another person, that firm still remains responsible for ensuring compliance with the requirements of ESG 4 and ESG 5.

Meaning of assets in ESG 4 and ESG 5

ESG 3.1.5R

1In ESG 4 to ESG 5, unless the context otherwise requires, a reference to the term ‘assets’ means:

  1. (1)

    the scheme property, in relation to an authorised fund; or

  2. (2)

    in relation to a sustainability product other than an authorised fund, the investments that the sustainability product makes.