Chaos postponed

The postponement of the SFDR’s extremely complex technical requirements is good news for the directors of funds affected by this measure. Incorporating ESG into risk management is hugely complicated. No one has any experience here.

In July SFDR’s Level 2, the highly technical part of it, was put back to July next year. It was first moved from March 2021 to January 2022.  Given the SFDR’s complexity, at Level 2, this might not be the last delay. Level 2 covers 13 regulatory technical standards. The SFDR requires EU fund managers, and those distributing funds there from third countries, to make a series of declarations and disclosures concerning the sustainability of the funds they manage.
 
The law firm Pinsent Masons has written the following on this: ‘The SFDR provides for the development of regulatory technical standards to specify the disclosure requirements. These technical standards are referred to as ‘SFDR Level 2’.

To read more on this story see the August issue of The NED.

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