[ESMA22-106-4508 ] Summary of conclusions joint meeting of the BoS and the SMSG – 27 January 2023

The joint meeting of the chairs of ESMA’s BoS and of the SMSG was held on 27 January 2023 at the ESMA headquarters in Paris. The meeting covered two main topics: greenwashing and funds‘ names, and market developments in crypto assets.
During the discussion on greenwashing, the SMSG presented their adopted advice on the issue, emphasizing the importance of a clear definition of the term „greenwashing“ to avoid misleading information and mismatches between product aims and investor expectations. They proposed that the regulatory framework should clarify responsibilities along the value chain without curbing the development of the ESG market. The ESMA and SMSG chairs noted the importance of greenwashing from an investor protection viewpoint and agreed on the need to avoid disadvantaging investors who wished to invest sustainably.
On the topic of crypto assets, the SMSG presented an overview of the FTX case and its potential impact on retail investors and financial stability, highlighting issues around the „crypto-conglomerate“ business model, lack of proper governance and corporate controls, and inadequate financial reporting and disclosures. They also asked whether a similar event could happen under the EU legal framework and what additional protections MiCA would provide.