Client preferences for sustainable investment are increasing and financial advisors take account of these client preferences is a key means to help reorient finance towards a sustainable economy.
Our 2022 mystery shopping campaign (253 visits across six EU countries) was designed to assess advisor behaviour in the context of new regulatory requirements under MiFID II to assess sustainability preferences which came into force in August 2022.
The results reveal an alarmingly low level of regulatory compliance and that harmonization of market practices has not yet been achieved. In only 48% of appointments did the advisor bring up the subject of sustainability preferences without any prompting by the client.
About our funders: This project is part of the Retail Investing Research Program at 2DII and has received funding from EIT Climate-KIC. The project is co-funded by the European Climate Initiative (EUKI) from a project together with WWF Greece and the Czech Consumer Organization. EUKI is a project financing instrument by the German Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU). The EUKI competition for project ideas is implemented by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH. It is the overarching goal of the EUKI to foster climate cooperation within the European Union (EU) in order to mitigate greenhouse gas emissions.