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You are viewing the version of the document as on 2023-12-15.

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    2023-12-15

ESG 3.1 Application of ESG 4 and ESG 5 to firms

Application

ESG 3.1.1 R

1This chapter applies to all firms.

Application of ESG 4 and ESG 5

ESG 3.1.2 R

1 ESG 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 3.1.3 R

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 3.1.4 R

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 3.1.5 R

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.