The European Banking Authority (EBA) has launched a public consultation on targeted revisions to its Guidelines on product oversight and governance (POG) arrangements for retail banking products, aiming to better capture products with Environmental, Social and Governance (ESG) features and mitigate greenwashing and related consumer detriment. The proposal clarifies how existing POG requirements should apply to ESG-featured products without adding new regulatory burden, focusing on a limited set of requirements covering the subject matter, manufacturers’ internal control functions, target market assessment, distribution channels, and information flows to distributors and to support manufacturers’ arrangements. The consultation reflects the EBA’s June 2024 greenwashing report and recent EU legislative changes, including amendments to the Capital Requirements Directive and Capital Requirements Regulation regarding ESG risks, and applies to manufacturers and distributors of products in scope such as mortgages, personal loans, deposits, payment accounts, payment services, and electronic money. The consultation is open until 9 October 2025, with a virtual public hearing scheduled for 11 September 2025. The EBA expects to publish final guidelines in Q1 2026, to apply from 1 December 2026.
European Banking Authority 2025-07-09
European Banking Authority consults on revised product governance guidelines to address ESG features and greenwashing in retail banking products
The European Banking Authority has launched a public consultation on revising its Guidelines for retail banking products with Environmental, Social, and Governance features to address greenwashing. The proposal clarifies existing requirements without new regulatory burdens, covering internal controls, target market assessment, and information flows. This aligns with the EBA’s greenwashing report and recent EU legislative changes, affecting manufacturers and distributors of products like mortgages and personal loans.