Taxonomy Regulation disclosures: Luxembourg guidance for funds and asset managers

The Taxonomy Regulation entered into force on 12 July 2020 but the application of certain transparency requirements was delayed for certain green financial products qualifying as article 8 (so-called Light Green Products) and article 9 (so-called Dark Green Products) under the Sustainable Financial Disclosure Regulation (SFDR) to 1 January 2022 and to 1 January 2023 depending on their environmental objective.

The CSSF has implemented a fast-track procedure for UCITS prospectus updates reflecting the disclosures under articles 5, 6 and 7 of the Taxonomy Regulation, which correspond to financial products under respectively articles 9, 8 and 6 under SFDR. In addition, the CSSF recommends financial markets participants to use “as far as possible and on a best effort basis” the templates for pre-contractual and periodic disclosures of Articles 8 and 9 financial products included in the ESA’s final report on draft Regulatory Technical Standards with regard to the content and presentation of disclosure under Articles 8(4), 9(6) and 11(5) of SFDR (the RTS).

This alert focuses on the Taxonomy Regulation pre-contractual and periodic disclosures for funds and asset managers.