EC Issues Amending Regulation Related to SFDR
The European Commission (EC) published a joint statement on the U.S.-EU financial regulatory forum and adopted an amending regulation for certain provisions in the Sustainable Finance Disclosures Regulation (SFDR or Regulation 2022/1288).
Regulation on sustainable disclosures. EC adopted the Delegated Regulation 2023/363 that amends and corrects the regulatory technical standards laid down in the Sustainable Finance Disclosure Regulation or SFDR. These standards are on the content and presentation of information in relation to disclosures in pre-contractual documents and periodic reports for financial products investing in environmentally sustainable economic activities. The SFDR Regulation sets out the details of the content and presentation of the information in relation to the principle of "do no significant harm." It also specifies the content, methodologies, and presentation of information in relation to sustainability indicators and adverse sustainability impacts and the content and presentation of the information to be provided in pre-contractual documents, on website and in periodic reports, in relation to the promotion of environmental or social characteristics and sustainable investment objectives of financial products. This Regulation shall enter into force on the third day following that of its publication in the Official Journal of the European Union.
Statement on Financial Regulatory Forum. The recent discussion of the EU-U.S. Financial Regulatory Forum, which was held on February 7-8, 2023, centered on six themes for regulatory cooperation: market developments and financial stability risks, sustainable finance and climate-related financial risks, regulatory developments in banking and insurance, operational resilience and digital finance, regulatory and supervisory cooperation in capital markets, and anti-money laundering and countering the financing of terrorism (AML/CFT). With regard to sustainable finance and climate-related financial risks, participants highlighted the progress made on the implementation of the Sustainable Finance Disclosures Regulation (SFDR), the development of European Sustainability Reporting Standards, and the proposal to enhance disclosures on climate risks by issuers and on environmental, social, and governance (ESG) practices by certain funds and investment advisers. The participants agreed to continue the bilateral exchange on sustainability-related disclosures and their engagement in international fora, including on standards being developed by the International Sustainability Standards Board (ISSB). Participants also updated each other on developments related to the implementation of Basel III reforms and shared views on operational resilience, digital finance, and crypto-asset-related issues. with the next Forum meeting expected in the Summer of 2023.
Keywords: Europe, Americas, US, EU, Banking, Basel, Regtech, Sustainable Finance, ESG, Climate Change Risk, SFDR, Reporting, Disclosures, EC
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
Applies proficiency and knowledge to regulatory capital and reporting analysis and coordinates business and product strategies in the banking technology area
Previous ArticleCSSF Updates Address Outsourcing Arrangements and ML-TF Risks
ECB Finds Banks Unprepared for Pillar 3 Climate Risk Disclosures
The European Central Bank (ECB) published results of the 2022 supervisory assessment of climate-related and environmental risk disclosures among significant institutions (103) and a selected number of less significant institutions (28).
NCUA Assesses Credit Union Exposure to Climate-Related Physical Risks
The National Credit Union Administration (NCUA) released a Research Note that examines the exposure of credit unions to climate-related physical risks. In a related development
EBA Issues Multiple Regulatory and Reporting Updates for Banks
The European Banking Authority (EBA) is seeking comments, until July 31, 2023, on the draft Guidelines on the proposed common approach to the resubmission of historical data under the EBA reporting framework.
EC Adopts Regulation on Own Funds, Issues Other Updates
The European Commission adopted Delegated Regulations on own funds and eligible liabilities, on requirements for the internal methodology under the internal default risk model
CDP Platform to Report Plastic-Related Impact, Issues Other Updates
The Carbon Disclosure Project (CDP) announced that its global environmental disclosure platform has enabled reporting on plastic-related impact for nearly 7,000 companies worldwide
IASB to Enhance Reporting of Climate Risks, Proposes IFRS 9 Amendments
The International Accounting Standards Board (IASB) updated its work plan to enhance the reporting of climate-related risks in the financial statements,
BIS Addresses Data Gaps and Macro-Prudential Policy for Climate Risks
The Financial Stability Institute (FSI) of the Bank for International Settlements (BIS) published a brief paper that examines challenges associated with the use of macro-prudential policies to address climate-related financial risks.
FCA Sets Out Business Plan, Launches TechSprint on Greenwashing
The Financial Conduct Authority (FCA) published its business plan for 2023-24. The plan sets out details of the work planned for the next 12 months to achieve better outcomes for consumers and markets
UK Committee Sets Out Recommendations for Next Phase of Open Banking
The Joint Regulatory Oversight Committee (JROC), comprising the Financial Conduct Authority (FCA) and the Payment Systems Regulator (PSR) as co-chairs and the HM Treasury and the Competition and Markets Authority (CMA) as members
ECB Publishes Multiple Regulatory Updates for Banking Institutions
The European Central Bank (ECB) published the results of the 2022 climate risk stress test of the Eurosystem balance sheet,