Amendments to the SFDR RTS Adopted by the European Commission
Published 7 December 2022
Category: Impact and ESG
On 31 October 2022, the European Commission adopted amendments to the Commission Delegated Regulation (EU) 2022/1288 determining regulatory technical standards (RTS) for the SFDR. The amendments are based on ESA’s Final Report on draft Regulatory Technical Standards published on 30 September 2022.
The amendments imply that financial market participants must disclose information on whether the financial product invests in fossil gas and/or nuclear energy related activities that comply with the EU Taxonomy. The amendments adjust some of the RTS’ regulating pre-contractual and periodic disclosures. Further, Annex II-V are replaced by updated Annexes.
The amendments are specified in the following:
The amendments reflect the provisions set forth with the Commission Delegated Regulation (EU) 2022/1214 (the “Complementary Delegated Act”) which was adopted by the EU Commission on 9 March 2022 and will apply from 1 January 2023. The Complementary Delegated Act introduced additional technical screening criteria for climate change mitigation and climate change adaptation for additional economic activities, primarily in the nuclear energy and natural gas sectors. Therefore, the amendments aim to ensure that disclosures in future will ensure full transparency about investments in the sectors covered by the Complementary Delegated Act.
Next step: The amendments are now subject to a three-month scrutiny period by the European Parliament and the Council. If no objections are raised during this period, the amendments will enter into force on the third day following that of its publication in the Official Journal of the European Union. On this basis, the Regulation will, at the earliest, enter into force in the beginning of February 2023, provided that the amendments are accepted.
Tags: Disclosure Requirements
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