ESAs Seek to Clarify Draft Regulatory PDF | 0.74 MB
Detailed regulatory technical standards (“RTS”) under the Sustainable Finance Disclosure Regulation (“SFDR”) are expected to apply from 1 January 2023. Following “numerous requests for clarification received from stakeholders and national competent authorities”, on 2 June 2022, the European Supervisory Authorities (“ESAs”) published “Clarifications on he ESAs’ draft TS under SFDR”.
The key areas addressed by the ESAs2 include the following:
- disclosure of principal adverse impacts (“PAI”) of investment decisions on sustainability factors,
- guidance related to pre-contractual and periodic product disclosures;
- guidance related to Taxonomy-related product disclosures;
- guidance related to “do no significant ham” (“DNSH”) disclosures; and
- guidance related to disclosures for financial poducts with investment options.