Sustainable Finance Disclosure Regulation (SDFR)July 2021
Recently, the Central Bank of Ireland (CBI) published its first edition of the Intermediary Times for 2021. Several important topics were outlined for financial institutions to develop their business and prioritise the best interests of their customers.
One such topic is the Sustainable Finance Disclosure Regulation (SDFR).
The SDFR sets out disclosure requirements for several financial products. In addition, this regulation applies to all financial participants including, fund managers, pension providers, MiFID investment firms and insurance & investment intermediaries.
The following key requirements were highlighted:
- How financial product manufacturers and financial advisors should inform end-investors about sustainability risks in addition to the impact of investments on the environment and society as a whole
- How financial products that are classed as sustainable meet these ambitions
Having come into effect on 10th March 2021, the CBI expects that all firms where applicable to have complied with the SFDR obligations as of this date.
For smaller firms with less than three employees, these requirements will not come into effect until 10th March 2022, in line with EU Regulations.
In line with the SFDR application, Regulatory Technical Standards (RTS) are expected to be drafted and in place by January 2022.
For further details please refer to our previous article on SFDR HERE
By Sean Wallace - Regulatory Consultant