The Autorité des Marchés Financiers (AMF), the French securities commission, has updated its policy on fund names in line with EU-wide guidelines. Rules on the names of funds using ESG-related terms were introduced and finalised by the European Securities and Markets Authority (ESMA) last year to limit greenwashing across member states. As such, the AMF has amended position-recommendation 2020-03, which sets out minimum standards for France-domiciled funds to communicate the consideration of non-financial criteria in their names and attached documentation and marketing materials. Its previous criteria have been fully replaced by those set out in the ESMA guidelines and extended to all collective investment undertakings – including funds reserved for professional clients. For example, the changes allow market participants wishing to communicate centrally on non-financial criteria to count fossil fuel exclusions resulting from the ESMA guidelines as part of the 20% investment universe reduction rate for funds applying such exclusions. The changes are immediately applicable.
