CSSF Updates Address SFDR and Sustainability Risk in Existing Rules
The Financial Sector Supervisory Commission of Luxembourg (CSSF) published the Regulation No. 22-05 as well as a communication to the investment fund industry on regulatory requirements in relation to the Regulation 2019/2088 on sustainability-related disclosures in the financial services sector (Sustainable Finance Disclosure Regulation or SFDR) and the upcoming entry into force of the EU Regulation 2022/1288 (on SFDR regulatory technical standards).
Communication on SFDR
The communication on SFDR reiterates the deadline of January 01, 2023 for specific updates of the Undertakings for Collective Investment in Transferable Securities (UCITS) and the Alternative Investment Funds (AIFs) precontractual and periodic documents. The communication also provides information on filing of updated precontractual documents and periodic reports with CSSF in view of the upcoming entry into force of the SFDR regulatory technical standards. The communication highlights that CSSF intends to launch, in the near future, a dedicated data collection exercise to digitally collect the information in the precontractual and periodic disclosure templates, also covering AIFs managed by a Luxembourg-based Alternative Investment Fund Managers, which were not concerned by the filing procedure outlined above. Further details on the timing and practical proceeding of the data collection will be communicated at a later stage.
CSSF Regulation No. 22-05
CSSF also published the CSSF Regulation No. 22-05, which amends CSSF Regulation No. 10-4 and transposes the Commission Directive 2010/43/EU. Directive 2010/43/EU implements the Directive 2009/65/EC regarding organizational requirements, conflicts of interest, conduct of business, risk management, and content of the agreement between a depositary and a management company. The amendments to the CSSF Regulation No. 10-4 include addition of definitions on sustainability risk and sustainability factors and addition of Article 6a on obligation for investment companies to integrate sustainability risks into the management of UCITS, along with inserting information related to sustainability risks in Articles 5, 6, 10, 19, 26, and 43. CSSF Regulation N° 22-05 will be published in the Official Journal of the Grand Duchy of Luxembourg as well as on the CSSF website. The amendments came into force on July 31, 2022.
Related Links
- Communication on SFDR
- Notification on Regulation No. 22-05
- Regulation No. 22-05 (in French)
- Regulation No. 10-4 (PDF)
Keywords: Europe, Luxembourg, Banking, SFDR, ESG, Sustainable Finance, Sustainability Related Disclosures, Disclosures, Sustainability Risk, CSSF
Previous Article
PRA Consults on Definition of Simpler-Regime FirmRelated Articles
EBA Proposes Standards for IRRBB Reporting Under Basel Framework
The European Banking Authority (EBA) proposed implementing technical standards on the interest rate risk in the banking book (IRRBB) reporting requirements, with the comment period ending on May 02, 2023.
FED Issues Further Details on Pilot Climate Scenario Analysis Exercise
The U.S. Federal Reserve Board (FED) set out details of the pilot climate scenario analysis exercise to be conducted among the six largest U.S. bank holding companies.
US Agencies Issue Several Regulatory and Reporting Updates
The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.
ECB Issues Multiple Reports and Regulatory Updates for Banks
The European Central Bank (ECB) published an updated list of supervised entities, a report on the supervision of less significant institutions (LSIs), a statement on macro-prudential policy.
HKMA Keeps List of D-SIBs Unchanged, Makes Other Announcements
The Hong Kong Monetary Authority (HKMA) published a circular on the prudential treatment of crypto-asset exposures, an update on the status of transition to new interest rate benchmarks.
EU Issues FAQs on Taxonomy Regulation, Rules Under CRD, FICOD and SFDR
The European Commission (EC) adopted the standards addressing supervisory reporting of risk concentrations and intra-group transactions, benchmarking of internal approaches, and authorization of credit institutions.
CBIRC Revises Measures on Corporate Governance Supervision
The China Banking and Insurance Regulatory Commission (CBIRC) issued rules to manage the risk of off-balance sheet business of commercial banks and rules on corporate governance of financial institutions.
HKMA Publications Address Sustainability Issues in Financial Sector
The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.
EBA Updates Address Basel and NPL Requirements for Banks
The European Banking Authority (EBA) published regulatory standards on identification of a group of connected clients (GCC) as well as updated the lists of identified financial conglomerates.
ESMA Publishes 2022 ESEF XBRL Taxonomy and Conformance Suite
The General Board of the European Systemic Risk Board (ESRB), at its December meeting, issued an updated risk assessment via the quarterly risk dashboard and held discussions on key policy priorities to address the systemic risks in the European Union.