Finance

Germany’s Tough Green-Washing Stance Could Shape EU Fund Rules

  • Regulator Bafin to test fund industry’s sustainability claims
  • Fund industry lobby says Germany is setting too high a bar
Photographer: Alex Kraus/Bloomberg
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Germany’s financial markets watchdog says tough regulations it’s preparing to prevent green-washing in investment funds will help shape the next chapter of Europe’s efforts to make capitalism more sustainable.

“Germany’s rules will probably be a good step toward forming European ones,” Thorsten Poetzsch, BaFin’s head of securities supervision, said in an interview. “I think we’ll see a European draft on this sooner or later.”