2.2 Operating conditions

Extract from the European Commission's request for advice:

"The Commission is […] seeking the EIOPA and ESMA technical advices on how and where financial market participants are to integrate relevant sustainability risks within their business models and relevant procedures in the areas of […]:

- operating conditions, in particular investment strategy and asset allocation […] taking into account the size, nature, scale and complexity of their activities.

Operating conditions in delegated acts adopted under Article 50(1)(A) of the Solvency II Directive do not establish the details of the integration of sustainability risks within the conduct of business or prudential person rules and due diligence requirements. Financial market participants therefore should (i) define an investment strategy, (ii) where relevant, identify a proper asset allocation which clarifies how client's money is allocated in accordance with the investment strategy, and, (iv) ensure that the portfolio remai