RegSol Blog

Sustainability Related Disclosures and National Discretion regarding Article 17 of Regulation (EU) 2019/2088

January 2021

Should financial advisers who employ less than 3 people be exempt from these? Have your say by 29th of Jan 2021.

In December 2019 the Introduction Regulation (EU) 2019/2088 on Sustainability-related Disclosures in the Financial Sector (“SFDR” or “SF Disclosures Regulation”), came into force. It was amended by the Regulation on the establishment of a framework to facilitate sustainable investment (Taxonomy Regulation). The SFDR will apply generally from 10 March 2021, with certain obligations taking effect later.

The scope of the SFDR is extremely broad. It covers a large range of financial products and “financial market participants” (FMPs). It applies to FMPs across all sectors – fund managers, pension providers, insurance-based investment product providers, MiFID investment firms and credit institutions.

The Regulation also applies to “financial advisers”, including certain insurance intermediaries and providers of investment advice. The SFDR introduces additional disclosure requirements and creates sustainability disclosure obligations for manufacturers of financial products and financial advisers toward end-investors.

The Department of Finance has invited interested parties to make submissions in relation to the exercise of the national discretion in Article 17 of Regulation (EU) 2019/2088. Member States are given discretion as to whether to exempt financial advisers which employ fewer than three persons or to apply the Regulation to these entities.

The consultation period will run to 5pm, 29th January 2021.

Public Consultation on the exercise of the national discretion in Article 17 of Regulation (EU) 2019/2088

By: Elish Larkin