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
Previous Article
EC Launches Consultation on Functioning of Securitization FrameworkRelated Articles
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.
BIS Bulletin Examines Cognitive Limits of Large Language Models
The use cases of generative AI in the banking sector are evolving fast, with many institutions adopting the technology to enhance customer service and operational efficiency.
ECB is Conducting First Cyber Risk Stress Test for Banks
As part of the increasing regulatory focus on operational resilience, cyber risk stress testing is also becoming a crucial aspect of ensuring bank resilience in the face of cyber threats.
EBA Continues Momentum Toward Strengthening Prudential Rules for Banks
A few years down the road from the last global financial crisis, regulators are still issuing rules and monitoring banks to ensure that they comply with the regulations.
EU and UK Agencies Issue Updates on Final Basel III Rules
The European Commission (EC) recently issued an update informing that the European Council and the Parliament have endorsed the Banking Package implementing the final elements of Basel III standards