EFAMA Leads Call for Orderly SFDR Approach

Industry members, including European Fund and Asset Management Association (EFAMA), have issued a joint letter requesting that the European Commission better coordinates the publication of new rules on the Sustainable Finance Disclosure Regulation (SFDR). This includes a call to delay technical changes by supervisors until the broader review of SFDR is completed. Other co-signatories include the European Banking Federation, Insurance Europe, the European Savings and Retail Banking Group, the Alternative Investment Management Association, the Association for Financial Markets in Europe, and the European Association of Cooperative Banks. At the end of last year, the European Supervisory Authorities (ESAs) released draft Regulatory Technical Standards (RTS), addressing Principle Adverse Impact indicators and various technical issues within SFDR. In parallel, the European Commission undertook a broader and more fundamental review of SFDR. “Our associations are concerned about the lack of coordination between these major review projects, which put investors’ confidence in sustainable investment solutions and the reliability of the EU standards for sustainable disclosures at risk,” the joint letter read. “It is critical that these two reviews of SFDR are fully coordinated to guarantee legal certainty and deliver a successful law-making process, preventing overlapping and doubling efforts.” The organisations urged the Commission to delay the adoption of RTS measures proposed by the ESAs, and to reconsider changes to SFDR holistically.

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