ESAs Request EC Input on Interpretative Issues in Application of SFDR
In a letter to EC, Steven Maijoor, the Chair of the Joint Committee of ESAs, mentioned several important areas of uncertainty in the interpretation of the Sustainable Finance Disclosure Regulation (SFDR or Regulation 2019/2088). These areas of uncertainty relate to the questions raised by stakeholders during the consultation process for draft regulatory technical standards for the content, methodologies, and presentation of disclosures pursuant to SFDR. The letter outlines certain priority questions that would benefit from a more urgent clarification, to facilitate an orderly application of SFDR from March 10, 2021. ESAs look forward to hearing from EC in this matter.
The Annex to the letter elaborates on these priority areas of SFDR, which cover the:
- Application of SFDR to non-EU and registered Alternative Investment Fund Managers, or AIFMs
- Application of the 500-employee threshold for principal adverse impact reporting on parent undertakings of a large group
- Meaning of “promotion” in the context of products promoting environmental or social characteristics
- Application of Article 9 of SFDR on transparency of sustainable investments in pre‐contractual disclosures
- Application of SFDR product rules to portfolios and dedicated funds
Related Link: Letter (PDF)
Keywords: Europe, EU, Banking, Insurance, Securities, SFDR, Sustainable Finance, Disclosure, ESG, Regulation 2019/2088, Sustainability-Related Disclosures, Climate Change Risk, EC, ESAs
Previous Article
EBA Issues Standards on Prudential Treatment of Investment FirmsRelated Articles
BIS Examines Use of Big Data and Machine Learning at Central Banks
BIS published a paper that provides an overview on the use of big data and machine learning in the central bank community.
APRA Finalizes Reporting Standard for Operational Risk Requirements
APRA finalized the reporting standard ARS 115.0 on capital adequacy with respect to the standardized measurement approach to operational risk for authorized deposit-taking institutions in Australia.
ECB Publishes Guide for Determining Penalties for Regulatory Breaches
ECB published a guide that outlines the principles and methods for calculating the penalties for regulatory breaches of prudential requirements by banks.
MAS Sets Out Good Practices to Manage Operational Risks Amid COVID
MAS and The Association of Banks in Singapore (ABS) jointly issued a paper that sets out good practices for the management of operational and other risks stemming from new work arrangements adopted by financial institutions amid the COVID-19 pandemic.
ACPR Announces New Data Collection Application for Banks and Insurers
ACPR announced that a new data collection application, called DLPP (Datalake for Prudential), for collecting banking and insurance prudential data will go into production on April 12, 2021.
BCB Maintains CCyB at 0%, Initiates First Cycle of Regulatory Sandbox
BCB announced that the Financial Stability Committee decided to maintain the countercyclical capital buffer (CCyB) for Brazil at 0%, at least until the end of 2021.
EIOPA Launches Study on Non-Life Underwriting Risk in Internal Models
EIOPA has launched a European-wide comparative study on non-life underwriting risk in internal models, also kicking-off of the data collection phase.
SRB Publishes Overview of Resolution Tools Available in Banking Union
SRB published an overview of the resolution tools available in the Banking Union and their impact on a bank’s ability to maintain continuity of access to financial market infrastructure services in resolution.
EBA Consults on Pillar 3 Disclosure Standards for ESG Risks Under CRR
EBA is consulting on the implementing technical standards for Pillar 3 disclosures on environmental, social, and governance (ESG) risks, as set out in requirements under Article 449a of the Capital Requirements Regulation (CRR).
ESAs Issue Advice on KPIs on Sustainability for Nonfinancial Reporting
ESAs Issue Advice on KPIs on Sustainability for Nonfinancial Reporting
