Advisors must explain sustainable investment, gather their clients' sustainability preferences, deliver investment products that align with client preferences, and report on the portfolio's alignment.Advisors are left without solutions to fulfill these regulations. YourStake's MiFID solution makes tricky client value interactions simple, scalable, and impactful to help advisors deliver a compelling client experience in compliance with MiFID.
MiFID II is a framework that is part of the European Union (EU) to improve protections to investors who want to invest in ESG themes. It's main focus is the standardize practices across the EU.
In August of 2022, a range of measures came into force of which the requirement of obtaining information and assess investment suitability on the basis of a client's preferences to invest sustainability. The MiFID ESG regulation outlines three categories of sustainability for investment products labeled as: Environmentally sustainable investments, Sustainable investments, and investments that consider sustainability factors.
Investors are now required to be asked by their financial advisor if they want their portfolios to have any of the factors listed above and how much of each. Then, the advisor must offer recommendations only of products that meet these preferences.