The European Banking Authority has published revised product oversight and governance guidelines for retail banking products, clarifying how firms should handle products with environmental, social and governance features when they are offered and sold to consumers. The changes make ESG and greenwashing considerations more explicit across the product lifecycle, with the aim of reducing the risk that consumers are misled or sold products that do not meet their needs. The amendments apply to manufacturers and distributors of products within the EBA’s remit and focus on the main control points for product design and distribution. They strengthen expectations for internal control functions, identification of the target market, use of distribution channels, information provided to distributors, and support for manufacturers’ arrangements. The package also includes non-substantive updates to align the guidelines with the current regulatory framework, including changes to the EBA Founding Regulation, the revised guidelines on internal governance under the Capital Requirements Directive, and the sound management of third-party risk. The guidelines will be published in all 24 European Union languages in 2026 and will apply from 11 January 2027.
European Banking Authority2026-06-30
European Banking Authority revises product oversight guidelines to address greenwashing risks in ESG retail products
The European Banking Authority has revised its product oversight and governance guidelines for retail banking products to make ESG and greenwashing requirements clearer where products are marketed to consumers. The changes tighten expectations across product design and distribution and align the guidelines with more recent regulatory updates. The revised guidelines will apply from 11 January 2027.