Publications

Data-driven insights into class action risk across Europe, a key concern for major corporates

Sus­tain­ab­il­ity-linked financing is still in its infancy, but it is already an integral part of today's financing landscape and looks set to remain into the future. Plenty of data and information exists, particularly on the KPIs of sus­tain­ab­il­ity-linked financings, but it is scattered. In this guide we have compiled, analysed and commented on all aspects of sus­tain­ab­il­ity-linked financing to give you access to everything you need to know.

ESG: Environmental, Social & Governance

Over a relatively short period of time, the implementation of ESG (environmental, social and governance) aspects in commerce has grown to become a strategic priority at management level. While the substance of ESG is likely to evolve in the coming years, the underlying impulse for businesses to make a social contribution, and not just an economic one, is here to stay. In essence, it is about maintaining and reinforcing the social licence of a business to operate in a rapidly changing world. As a result, ESG goes to the heart of every business. Future-looking companies Not all aspects of E, S and G are priorities for all companies. Companies will carefully have to weigh which ESG aspects they want to focus on. For that reason, it is instructive to observe organisations that approach ESG in a rigorous, strategy-driven, socially attuned way. McKinsey calls these organisations ‘for­ward-look­ing companies’. They make ESG intrinsic to their strategy by deliberately applying those ESG aspects that connect to the core of their business. Forward-looking companies also promote competition by standing out and using good corporate citizenship to contribute to finding solutions to existential challenges, such as climate change. Distinguishing role Whatever your company's ambition, you will always need to comply with the ESG regulations, including those on environmental legislation, labour-law issues and governance. But forward-looking companies take it one step further, and usually raise the bar by focusing on certain aspects of ESG in which they can play a leading or distinguishing role. Ideally, this will also motivate similar companies to take a comparable route when it comes to ESG. Roadmap to social profit This ESG special publication provides company lawyers a concise overview of the most important ESG regulations, as well as concrete tools to give managers better advice in the field of ESG. Various aspects and elements of a company will be discussed: from the distribution chain to commercial property, from sustainable financing issues to the desired level of diversity and inclusivity within the population, and from governance to ESG litigation.

Financial and banking legislation does not stand still. So neither do we. At CMS we employ over 500 banking & finance lawyers to anticipate, interpret and advise on the local, cross-border and international...

Data driven insights into  class action risk across Europe, a key concern for major corporates

What’s next? In a world of ever-ac­cel­er­at­ing change, staying ahead of the curve and knowing what’s next for your business or sector is essential. At CMS, we see ourselves not only as your legal advisers but also as your business partners. We work together with you to not only resolve current issues but to anticipate future challenges and innovate to meet them. With our latest publication, CMS Next, our experts will regularly offer you insights into and fresh perspectives on a range of issues that businesses have to deal with – from ESG agendas to restructuring after the pandemic or facing the digital transformation. We will also share with you more about the work that we are doing for our clients, helping them innovate, grow and mitigate risk. To be able to provide you with the best support, we immerse ourselves in your world to understand your legal needs and challenges. However, it is equally important that you know who we are and how we can work with you. So, we invite you to meet our experts and catch a glimpse of what is happening inside CMS. Enjoy reading this publication, which we will update regularly with new content. CMS Executive Team

On February 9, 2022, the Dutch Authority for the Financial Markets (AFM) published a statement on the impact of payment for order flow (PFOF) on the quality of order execution. The AFM performed a study on the execution quality of PFOF trading platforms. According to the AFM's analysis, PFOF trading platforms structurally offered worse execution prices for retail clients in comparison to other liquid markets. The statement from the AFM follows a warning from ESMA last summer in which it warned firms and investors for the risks arising from PFOF. In PFOF, a trading platform or market maker pays a fee to a broker to obtain the exclusive right to execute the orders of the broker's clients. According to ESMA, PFOF inappropriately incentivises investment firms to select the party offering the highest payment, rather than the party offering the best possible outcome for clients in executing orders. AFM's analysisThe AFM examined the quality of two PFOF trading platforms and one non-PFOF trading platform. The initial results of the AFM analysis show that these PFOF trading platforms offered structurally worse execution prices based on a comparison with actual transactions of several other trading platforms. The AFM’s analysis focused only on Dutch shares, but it has shared the methodology with other regulators in Europe to allow them to perform a similar analysis. AFM's opinion: EU-wide ban on PFOF neededPFOF is prohibited in the Netherlands. The AFM is of the opinion that PFOF is an undesirable trading model, as it leads to a lack of cost transparency towards investors and is contrary to the principle of open and competitive markets. The AFM advocates an EU-wide ban on PFOF as it ensures a level playing field and prevents brokers established in another EU member state to service Dutch investors using PFOF.

The legal framework in the fintech industry is changing very quickly and sometimes varies greatly from jurisdiction to jurisdiction. Our global update, will give you an overview of the latest changes and topics we have been dealing with in Europe, Africa and Latin America region. This will give you an at a glance summary of a number of articles that we have produced on a local basis. For a more in-depth analysis or for any questions, please reach out to your usual CMS contact or listed in this update Fintech experts.

First report on the true picture of European class action risk, a key concern for major corporates 

Crypto-service providers must comply with less stringent rules than previously required by the Dutch Central Bank (DNB), which has revoked the requirement for crypto-service providers to check the identity...