EC to Defer Application of SFDR Standards Till July 2022
The European Commission (EC) announced plans to defer the application of 13 regulatory technical standards under the Sustainable Finance Disclosure Regulation (2019/2088) by six months, from January 01, 2022 to July 01, 2022. This is because EC requires additional time in the adoption process. EC plans to bundle all 13 regulatory technical standards into a single delegated act.
In a letter dated May 05, 2021, EC had informed that draft regulatory technical standards under Articles 2a(3), 4(6) and (7), 8(3), 9(5), 10(2), and 11(4) of the Sustainable Finance Disclosure Regulation could not be adopted within the three-month period, as EC needs additional time in the adoption process. The draft regulatory technical standards were jointly submitted to EC by the European Insurance and Occupational Pensions Authority (EIOPA), the European Securities and Markets Authority (ESMA), and the European Banking Authority (EBA) on February 04, 2021. The standards should apply from January 01, 2022. EIOPA, ESMA and EBA are also preparing six additional draft regulatory technical standards under the Sustainable Finance Disclosure Regulation, based on Articles 8(4), 9(6), and 11(5) of this regulation. The deadline for the submission of these standards to EC is set at June 01, 2021 and certain provisions of the standards should apply from January 01, 2022. These draft regulatory technical standards should, inter alia, amend the draft regulatory technical standards dated February 04, 2021. Due to the length and technical detail of those regulatory technical standards, the late submissions to EC, and the envisaged amendments, EC deems it necessary to defer implementation date to facilitate the smooth implementation of the standards by product manufacturers, financial advisers, and supervisors.
Related Links: EC Letter
Keywords: Europe, EU, Banking, Securities, Insurance, SFDR, Regulatory Technical Standards, Delegated Act, Sustainable Finance, ESG, Disclosures, ESAs, EC
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