After long and tough discussions, EU ambassadors adopted a new compromise proposal on the Corporate Sustainability Due Diligence Directive (CSDDD) in Brussels on 15 March 2024. Now the measures are likely to pass into law. The next step is for the Parliament to give its approval.
On 26 March 2024, Directive (EU) 2024/927 amending the Alternative Investment Fund Managers Directive and the Undertaking for Collective Investment in Transferable Securities Directive relating to delegation arrangements, liquidity risk management, supervisory reporting, provision of depositary and custody services and loan origination by alternative investment funds (AIFMD II or “Directive”) was published in the Official Journal of the European Union.
AIFMD II will enter into force on 15 April 2024.
The Corporate Sustainability Due Diligence Directive (“CS3D”) was provisionally agreed at a political level in December 2023, and confirmed by COREPER in a revised version in March 2024. Once formally approved, this new law will have significant impacts on many EU companies and non-EU companies active in the EU, as well as on their value chains throughout the world. In this first installment of our new “CS3D Explainer Series”, we answer the following four key questions: “Which companies are covered?,” “What will be their new obligations?,” “Why should they comply?” and “When will this start to apply?”
On 15 March 2024 a new compromise proposal of the Corporate Sustainability Due Diligence Directive (CSDDD) was agreed upon by the EU Member States. The CSDDD sets out human rights and environmental due diligence obligations for companies within and also outside of the EU. Some key regulations have been eased in order to reach an agreement and pave the way for passing the law. As a next step the European Parliament has to adopt the Directive before the Member States will have to transpose the Directive into national law.
Although things seemed to be going badly for a while and a deal looked unlikely, the EU Parliament and the Council of the EU have finally reached an agreement on the proposed Platform Workers Directive (the “Directive”). This time, it looks likely to progress to adoption and, ultimately, implementation across the EU member states.
The Directive aims to improve the working conditions of individuals performing work for a digital labor platform.
Following calls by the European Parliament for potentially far-reaching changes, the European Commission has now kicked off the EU legislative process to revise the European Works Council Directive. This alert provides an update on the Commission’s proposals, and we will issue further alerts as the legislative process continues.
On 23 January 2024, the European Medicines Agency published an updated version of the user guide for micro, small and medium-sized enterprises in the pharmaceutical sector. The revised guide offers comprehensive information on the EU legislative framework for medicines, outlining requirements for the development and authorization of medicines for human and veterinary use.
On 24 January 2024, the European Commission published a package compromising five initiatives aimed at bolstering the EU’s economic security amidst growing geopolitical tensions and profound technological transformations. Central to this package is a proposal for a reform of the existing EU foreign investment review screening framework as it currently exists on the basis of Regulation (EU) 2019/452 and essentially provides for a notice-and-comment procedure in its current form.
Hot on the heels of the unanimous vote by Ambassadors for the EU Member States approving the EU AI Act on 2 February, on 13 February, lawmakers from the EU Parliament have also overwhelmingly voted in favor of the Act as it continues on its legislative journey. The joint internal market and civil liberties committee of the Parliament voted 71 to 8 to approve the Act, with 7 abstentions. This now leaves the path to bringing the Act into force only requiring a final vote by the European Parliament and national ministers, likely to be in April, which is now seen very much as a rubber-stamping exercise, given the votes that have taken place.
On 7 February 2024, the European Parliament voted on the proposed Directive amending the Alternative Investment Fund Managers Directive (2011/61/EU) (AIFMD) and the UCITS Directive (2009/65/EC) relating to delegation arrangements, liquidity risk management, supervisory reporting, provision of depositary and custody services, and loan origination by alternative investment funds.
The text of the directive will now be voted by the European Council. Once fully voted upon, the directive will enter into force on the 20th day of its publication in the Official Journal of the European Union.
EU member states will have two years from the directive’s entry into force to transpose it within their national law.