New RTS for sustainable finance disclosure regulation (SFDR) – key points for fund and asset managers
19 February 2021
As Firms continue to implement SFDR, which applies on 10 March 2021 across the EU, our latest Great Fund Insights client alert gives further detail on the Regulatory Technical Standard and how firms can make sense of the new regime.
The regulation will require certain firms, including fund and asset managers, to comply with new rules on disclosure in relation to sustainability risks and other ESG related matters.
As many firms are aware, there has been a delay in the finalisation of the Level 2 measures for SFDR which will take the form of a Regulatory Technical Standard or RTS. Although the Level 2 measures were originally intended to apply from 10 March, this has been delayed, with the final proposed RTS text only now being published by the European Supervisory Authorities (ESAs) in a highly detailed report of some c.200 pages. Given the late timing, it has been conceded that the application of the RTS must be delayed – it will now begin to apply from 1 January 2022, although firms will still have to start complying with the Level 1 SFDR requirements from 10 March 2021.
At the end of this alert, we have included a table to help highlight the relevant parts of the RTS.