meta_id 3284186

On June 30, 2026, the European Banking Authority (EBA) published revised Guidelines on product oversight and governance (POG) for retail banking products. The revised Guidelines clarify requirements for products with environmental, social and governance (ESG) features offered and sold to consumers, with explicit focus on addressing greenwashing risks. The EBA designed the Guidelines to ensure that financial institutions apply robust standards when designing and distributing ESG-related retail products, reducing the risk of consumers being misled or sold products that do not meet their needs. Targeted amendments make ESG and greenwashing considerations more explicit throughout the product lifecycle, particularly where such products are marketed to consumers. Key sections receiving updates include manufacturers' internal control functions, identification of the target market, distribution channels, and information provided to distributors. The Guidelines also include non-substantive updates reflecting changes introduced in 2020 to the revised EBA Founding Regulation and revisions to EBA Guidelines on internal governance under the Capital Requirements Directive (CRD) and sound management of third-party risk (SMTPR). These updates remove outdated provisions and ensure consistency with the current regulatory framework. The EBA Guidelines apply to manufacturers and distributors of products within its remit, including mortgages, personal loans, deposits, payment accounts, payment services and electronic money. The European Supervisory Authorities (ESAs) define greenwashing as practices whereby sustainability-related statements, declarations, actions or communications do not clearly and fairly reflect the underlying sustainability profile of an entity, financial product or financial service. The EBA will publish the Guidelines in all 24 languages in 2026, with an effective date of January 11, 2027. The EBA first issued its POG Guidelines in 2016 to address conduct risks and strengthen consumer protection in retail banking.