MiFID2-ESG compliance

As of 2 August 2022 with the entry into force of the MiFID suitability assessment process, the advisers must include an additional consideration on whether any existing and new client has sustainability preferences. According to the amended regime (REGULATION (EU) 2021/1253), the client can express sustainability preferences in one or a combination of three ways:

  1. The percentage of a product’s alignment to the EU Taxonomy
  2. The percentage of a product’s allocation to sustainable investments as defined in SFDR
  3. Qualitative and quantitative consideration of principal adverse impacts (PAIs)

Ergo these three types of sustainable products correlate to different EU regulations that aim for transparency of sustainable financial products.

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REGULATION (EU) 2020/852

Taxonomy

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REGULATION (EU) 2019/2088

SFDR

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REGULATION (EU) 2021/1253

PAI

Sustainability-related disclosures

Please find below the sustainability-related disclosures for Helveteq and all of our products. You can furthermore access the product pages directly to find more information.

Product Pre-contractual disclosure Learn More
BTCO2 Learn More
ETH2O Learn More
Integration of sustainable risks in investment processes:
Sustainability Risk Policy
Remuneration policy with respect to sustainability risks:
Remuneration Policy
Sustainable investing and transparency:
PAI Statement
Statement on sustainability:
Sustainability Statement
Statement on SFDR Equivalence:
SFDR Equivalence

SFDR

The Sustainable Finance Disclosure Regulation (SFDR) entered into force on  10 March 2021. The Regulation requires financial market participants in the EU to provide information to investors with regards to the integration of sustainability risks, the consideration of adverse sustainability impacts, the promotion of environmental or social characteristics, and sustainable investment. The goal of this regulation is to enhance transparency with regards to ESG-related risks and objectives. By creating a solid framework for ESG reporting, the risk of greenwashing shall me minimized.
Part of the SFDR are the PAI (principal adverse impacts) on sustainability indicators. The purpose of PAI is to disclose possible negative impacts on sustainability with regards to the investments that are being made.
On top of the SFDR, the EU has already set in place the so-called Taxonomy which aims to enhance the ESG transparency even further by urging financial service providers to calculate the percentage of funds that ultimately flow into “sustainable economic activities”.

Helveteq has chosen to be guided by the high standards imposed by the EU regulations to deliver optimal transparency. In order to apply sustainability criteria to its products, Helveteq uses the concept of Sustainable Asset Pools. This means that a set of assets are allocated to a particular product of the issuer. In this concept, no asset can be used for more than one product. This is in line with Helveteq’s strict implementation of a 1:1 replication method via physical underlying. Suitable assets for the Sustainable Asset Pool include, in particular, loans as well as securities or commodities held in the nontrading book, respectively in specific accounts dedicated to the relevant issued products.

For each asset held in the Sustainable Asset Pool, the issuer calculates an SFDR ratio and/or, as soon as the required data is available, the taxonomy ratio. For the taxonomy ratio, either the KPIs reported by the investee companies in accordance with Article 8 of the Taxonomy Regulation or to the extent permitted by supervisory law data and/or taxonomy ratios supplied by external data providers can be used. These may relate to the investee company or specific assets. To determine the SFDR ratio, the issuer may use internal and/or publicly available data relating to the respective investee company as well as data and/or SFDR ratios provided by external data providers relating to the respective investee company. The individual SFDR or taxonomy ratios are then used to determine an SFDR or taxonomy ratio for the entire Sustainable Asset Pool as a whole.

An ETP is allocated to a Sustainable Asset Pool, hence the SFDR or taxonomy ratio of the ETP corresponds to that of the respective Sustainable Asset Pool. If several Sustainable Asset Pools have been set up, the allocation will be made to the Sustainable Asset Pool with an SFDR or taxonomy ratio corresponding to that specified for the structured product by the issuer.

Roadmap for the Implementation of ESG Regulations

sfdr street timeline