New EU rules: How to protect yourself from dubious green funds!

New EU rules: How to protect yourself from dubious green funds!

The Austrian financial market supervision (FMA) started a comprehensive information campaign on April 30, 2025 to clarify consumers about the new EU rules for the use of terms such as "sustainable", "green" or "ESG" in fund names. These new provisions, which were introduced by the European Securities and Market Authority (ESMA), aim to create transparency and to protect against misleading names. The FMA has taken over the ESMA rules to its supervisory practice to ensure that funds are sufficient with corresponding names.

As part of the new regulations, it is determined how much capital of a fund must actually be invested in environmentally or socially conscious companies. Funds that position themselves as sustainable must not invest in certain areas that contradict these claims. This is intended to help ensure a clear differentiation between real sustainable and less responsible investments.

important information for investors

The FMA recently published the 50th edition of its information series "We talk about money", which is entitled "The Fund name committed". This series was started to illuminate different topics, including investment fraud and consumer loans. In addition to the publication, the FMA also offers a new Instagram channel and a podcast to spread information about sustainable investment. Further details are available on the [FMA website] (https://www.ots.at/presseaus-sung/ots_20250430_ots0100/Gruen-im-wedt-fma-infma-infa-and-consumer-deer-fuer-sustainable-gruene- or-esg fund). The fund industry plays a crucial role in accordance with the goals of the EU to make the economy climate -neutral by 2050. The Federal Association of Investment and Asset Management (BVI) emphasizes that the fund industry has been supporting sustainable projects for years and that a uniform definition for sustainable products is necessary. The EU has already passed several legal framework conditions, but it remains to be established in the political actors, clear criteria and standards for sustainable financial products.

regulation and transparency increase

In order to further increase transparency, the EU has also presented a new package of measures for sustainable finance. This package includes new EU taxonomy criteria that aim to support companies and the financial sector in the private financing of transition projects. Financial Commissioner Mairead McGuinness emphasizes the need to further develop EU taxonomy in order to create a coherent and user-friendly regulatory environment.

Another important element is the regulation of the ESG rating providers. According to the new ESG rating regulation, which is expected to come into force from 2026, providers of ESG ratings will in future be subject to approval and supervision by the ESMA. This regulation is intended to improve transparency and integrity in the area of sustainability assessment.

With these regulations, the EU not only strives for better market transparency, but also wants to ensure that investors can make well -founded decisions that correspond to the principles of a sustainable economy. Information about the planned measures are available on the [website of the EU Commission] (https://germany.representation.ec.europa.eu/news/nachhaltigigen-finanzen-uk-mache-- Neue-fur-eu-eu-eu-eu-esg-kriterien-2023-06-13_de)