Distributors

For the wholesale/retail investors, the distributors subject to IDD or MiFID will ‘ask’ the investors about their preference to invest in a sustainable manner.

The probability to have positive requests being very high, distributors need to decide on two main strategic choices: 

  • what new (sustainable) products to add to the product shelf and 

  • how to include the sustainability objectives into the client risk and investment profile.

In particular the management of a double investment objective, i.e. financial yield and sustainability, will stress the discretionary and investment advisory teams and systems, triggering operational and upskilling challenges.

sustainable finance for distributors

Practical challenges for distributors (not exhaustive):

Strategy

  • Definition of a “Sustainability Strategy” for the product shelf and the firm at large → strategic positioning

View more

Disclosures

  • Disclosure of certain elements of the sustainability strategy

View more

Processes

  • Incorporation of sustainability preferences in the suitability test of the client

  • Inclusion of ESG criteria in the distributor target market

  • Mapping of sustainability criteria defined in the manufacturer and in the own target market to the client’s individual ESG preferences

View more

People & Organisation

  • Upskilling of all affected employees (incl. Management)

  • Need for SF / ESG specialists 

  • Policy review and update

View more

IT & Data

  • New information on sustainability indicators (e.g. ESG ratings) must be readily available in the systems of the distributor, i.e. new data must be loaded into the system (additional data fields)

  • Selection of adequate ESG-data providers

  • Implementation of control systems to monitor the client’s portfolio composition with regards to ESG-criteria

View more

Contact us

Olivier Carré

Markets and Strategy Financial Services Leader, PwC Luxembourg

Tel: +352 49 48 48 4174

Nathalie Dogniez

Sustainable Finance Leader, PwC Luxembourg

Tel: +352 49 48 48 2040

Jörg Ackermann

Partner, Financial Services Consulting, PwC Luxembourg

Tel: +352 49 48 48 4131