Balanced financial products
- A financial product within the meaning of the SFDR is a managed portfolio within the meaning of MiFID2, an alternative investment fund (AIF), an insurance investment product, a pension product, a pension plan, a UCITS (Undertaking for Collective Investment in Transferable Securities) and a pan-European individual pension product (OIPE).
- The SFDR stipulates a division of financial products into those that promote the environmental or social aspect, or both (Article 8(1) of the SFDR) and those that aim at sustainable investment (Article 9(1) of the SFDR).
- Examples of sustainable financial products include sustainable credit facilities, green and energy-efficient mortgage loans, green commercial building loans, green debit and credit cards, green bonds, sustainability-linked loans or bonds.
- Offering sustainable financial products involves a number of regulatory obligations, both in the relationship with customers and in the dimension of internal documentation.