Challenges for Investment Professionals regarding greenwashing Posted on December 12, 2023 at 1:53 pm.Written by Roeland Jongejan DSI and EY are joining forces in 2023 for roundtable meetings on greenwashing in the financial sector. We aim to facilitate a constructive dialogue among professionals in the investment industry, discussing recent developments and their impact on investment practices. Previous meetings In previous sessions, held in June and September, the focus was on legal, compliance, and marketing aspects of greenwashing. Participants extensively discussed the definition of greenwashing and how organizations interpret this concept. They also reflected on the Progress Report of the European Supervisory Authorities dated June 1st. Read more about these meetings here. Challenges for Investment Professionals During our third meeting on November 22nd, investment professionals collectively discussed challenges related to ESG investing and greenwashing. The growing demand for transparency regarding companies’ sustainable results (and the regulations surrounding them) poses challenges for investment professionals. One of these challenges is the sometimes limited availability of the right data. On the other hand, it was also noted that more data might not necessarily be the solution to the problem of greenwashing. Training During the meeting, investment professionals emphasized the importance of effective communication. It’s crucial to be transparent about the dilemmas surrounding ESG investing. An investment that was previously classified as sustainable may no longer be so later, partly due to regulatory changes. Investment professionals need a basic level of expertise in the ESG field. DSI can play a role in setting standards for competence and integrity. Awareness and future whitepaper It’s essential for organizations to create greater awareness of greenwashing across various sectors. The findings from the three sessions will be compiled into an informative whitepaper, to be shared with the industry in the first quarter of 2024. Contact information For more information about these meetings, you can contact Floris Mreijen, the director at DSI, and/or Mark van der Lecq, the lead legal at DSI.
DSI and EY are organizing a roundtable discussion on Greenwashing Posted on August 25, 2023 at 9:11 am.Written by Roeland Jongejan DSI and EY are joining forces in 2023 to organize a series of exclusive roundtable meetings, focusing on the current topic of greenwashing and how the financial sector is addressing it. Our goal is to facilitate a constructive dialogue among policymakers from various sectors, discussing recent developments and analyzing their impact on investment practices. The discussion will revolve around the moral and ethical considerations related to greenwashing. The valuable insights derived from these meetings will be compiled and presented in an informative white paper by the end of the year. Greenwashing from different perspectives The first meeting took place on June 7th at Beursplein in Amsterdam, with a focus on compliance and legal aspects. This session brought together professionals from risk, legal, and compliance domains of various DSI participants. After an introduction and setting the meeting’s objectives, open discussions covered various topics. Firstly, the current definition of greenwashing was critically examined. What does this term precisely entail, and how do the present organizations interpret this theme? We reflected on an ESMA article published on June 1st that explores the definition of greenwashing based on various articles. Current regulation surrounding greenwashing Subsequently, our attention turned to the current regulations. Greenwashing is addressed through several European sustainable finance regulations. Together, we discussed how organizations navigate this complex set of rules. How do they implement these guidelines, and which regulations have the most significant impact on their operations? Moral and ethical considerations regarding greenwashing were also extensively discussed. We explored the differences in ethical standpoints on ESG between investors and institutions offering investment products. Why does such a disparity in understanding exist, and should the financial sector itself establish concrete frameworks to provide clarity and maintain trust? Creating awareness about greenwashing within your organization The final part of the meeting focused on creating awareness about greenwashing within organizations. How can we ensure that this topic is on the agenda at every level of the organization? Attendees shared valuable best practices, which we will elaborate on in the white paper scheduled for publication at the end of the year. After the summer, DSI and EY will host two more sessions on Greenwashing, but this time from a different perspective, involving marketing and communication specialists, as well as investment experts. The findings from these three gatherings will be consolidated into an informative white paper, to be shared on our website. For more information about these inspiring meetings, feel free to reach out to Floris Mreijen (Director) and/or Mark van der Lecq (Lead Legal) by sending an email to certificering@dsi.nl.
Outcomes of DSI Disciplinary Cases Posted on March 22, 2023 at 11:09 am.Written by Roeland Jongejan Over the past period, DSI has conducted and resolved various Disciplinary Investigations. One of the outcomes involved a reprimand issued by the DSI Disciplinary Committee to a Senior Relationship Manager Private Banking employed at a bank. We have summarized the results of all investigations in a brief overview. This summary provides insights into the various ways DSI handles disciplinary matters. Revocation of Certification by DSI On December 14, 2022, DSI revoked the certification of a partner from an investment firm under article 6.2 of the General Regulations. This article allows for certification revocation if the certified individual no longer complies with DSI’s regulations or breaches any provision therein. DSI believed that revocation was appropriate in this case due to the certified individual receiving a fine from the AFM (Authority for the Financial Markets). Additionally, the certified individual had not fulfilled the obligation to complete the Permanent Professional Competence program. The certified individual had the option to appeal the revocation decision by DSI through the DSI Disputes Committee. However, the certified individual chose not to appeal, making the revocation final. Transaction Under the General Regulations, DSI is empowered to impose disciplinary measures through a transaction, which may entail a fine or an educational measure. On January 3, 2023, DSI presented a transaction proposal to an investment advisor employed at a bank. DSI’s investigation had revealed that the certified individual had accessed customers’ bank accounts without a valid business reason. When considering the transaction proposal, DSI took into account measures already imposed by the bank and the certified individual’s demonstrated insight into their erroneous actions, which they also self-reported to DSI. The transaction involved a corrective measure in the form of a mandatory integrity and critical judgment workshop. The certified individual accepted the transaction and has successfully completed the workshop, along with the accompanying examination. Dismissal On January 12, 2023, DSI decided to conclude an investigation against a DSI certified securities trader. DSI had initiated the investigation due to media reports about a criminal inquiry into insider trading. Upon receiving confirmation that the public prosecutor’s office had dropped the case against the trader, DSI closed the file. Disciplinary Committee ruling On February 21, 2023, the DSI Disciplinary Committee issued a ruling in a case involving a Senior Relationship Manager Private Banking employed at a bank. In the complaint, DSI highlighted the certified individual’s careless handling of confidential information and their actions giving rise to the appearance of a conflict of interest. The Disciplinary Committee found DSI’s complaint justified and imposed a reprimand on the certified individual.