The regulatory framework requires financial investment advisers and life insurance professionals to assess their clients' investment profile: experience and knowledge, financial situation, risk tolerance and other investment objectives. Since August 2022, the European regulatory framework resulting from the Markets in Financial Instruments Directive (MiFID II) and the Insurance Distribution Directive (IDD) has required these professionals to also take account clients' sustainability preferences when offering them suitable investments.
In the absence of classification of financial products based on clear and objective sustainability criteria, the regulatory concepts defining the sustainability of investments often remain little-known and complex to grasp, for both advisers and clients. The ACPR and AMF’s results of the work show that most advisory process do not comply with the regulatory framework’s requirements, and that most clients do not formulate detailed sustainability preferences regarding MiFID II and IDD's three regulatory sustainability criteria.
