ESAs Issue Statement on Application of Sustainability Disclosures Rule
ESAs published a joint supervisory statement on the effective and consistent application and on national supervision of the regulation on sustainability-related disclosures in the financial services sector (SFDR). ESAs had issued the final report on draft regulatory technical standards on SFDR disclosures for financial market participants on February 04, 2021. In this recent statement, ESAs recommend that the draft regulatory technical standards should be used as a reference when applying the provisions of SFDR in the interim period between the application of SFDR (as of March 10, 2021) and the application of the regulatory technical standards at a later date (proposed date of January 01, 2022). The Annex to the statement presents the timeline for SFDR and Taxonomy Regulation disclosure obligations as well as the related regulatory technical standards.
This supervisory statement of ESAs seeks to mitigate the risk of divergent application of SFDR disclosures in the financial services sector within the period from March 10, 2021 to the application date of the regulatory technical standards on the content, methodologies, and presentation of sustainability-related disclosures under SFDR. For the sake of applying the provisions of SFDR without regulatory technical standards during the interim period, national competent authorities are encouraged to refer financial market participants and financial advisers to the requirements set out in the draft standards of the final report that has been submitted to EC on February 04, 2021. As most of the provisions on sustainability-related disclosures laid down in SFDR apply from March 10, 2021, ESAs see merit in specific guidance for national competent authorities, financial market participants and financial advisers in the interim period before the application of the regulatory technical standards. Additionally, in March 2021, ESAs will publish a consultation paper on taxonomy-related product disclosures under the Taxonomy Regulation, which amends the empowerments in Articles 8(4), 9(6) and 11(5) of the SFDR.
Related Links
Keywords: Europe, EU, Banking, Insurance, Securities, SFDR, Taxonomy Regulation, Regulatory Technical Standards, Disclosures, Sustainable Finance, ESG, ESAs
Previous Article
EC Consults on Crisis Management and Deposit Insurance FrameworksRelated Articles
EBA Clarifies Use of COVID-19-Impacted Data for IRB Credit Risk Models
The European Banking Authority (EBA) published four draft principles to support supervisory efforts in assessing the representativeness of COVID-19-impacted data for banks using the internal ratings based (IRB) credit risk models.
EP Reaches Agreement on Corporate Sustainability Reporting Directive
The European Council and the European Parliament (EP) reached a provisional political agreement on the Corporate Sustainability Reporting Directive (CSRD).
PRA Consults on Model Risk Management Principles for Banks
The Prudential Regulation Authority (PRA) launched a consultation (CP6/22) that sets out proposal for a new Supervisory Statement on expectations for management of model risk by banks.
EC Regulation Amends Standards for Calculating Credit Risk Adjustments
The European Commission (EC) published the Delegated Regulation 2022/954, which amends regulatory technical standards on specification of the calculation of specific and general credit risk adjustments.
BIS Hub Updates Work Program for 2022, Announces New Projects
The Bank for International Settlements (BIS) Innovation Hub updated its work program, announcing a set of projects across various centers.
EIOPA Issues Cyber Underwriting Proposal, Statement on Open Insurance
The European Insurance and Occupational Pensions Authority (EIOPA) published two consultation papers—one on the supervisory statement on exclusions related to systemic events and the other on the supervisory statement on the management of non-affirmative cyber exposures.
US Senate Members Seek Details on SEC Proposed Climate Disclosure Rule
Certain members of the U.S. Senate Committee on Banking, Housing, and Urban Affairs issued a letter to the Securities and Exchange Commission (SEC)
EIOPA Consults on Review of Securitization Framework in Solvency II
The European Insurance and Occupational Pensions Authority (EIOPA) published a consultation paper on the advice on the review of the securitization prudential framework in Solvency II.
UK Authorities Issue Regulatory and Reporting Updates for Banks
The Prudential Regulation Authority (PRA) issued a statement on PRA buffer adjustment while the Bank of England (BoE) published a notice on the statistical reporting requirements for banks.
BCBS Issues Climate Risk Principles while HKMA Expresses Its Support
The Basel Committee on Banking Supervision (BCBS) issued principles for the effective management and supervision of climate-related financial risks.
