On the 2nd June 2022, the European Supervisory Authorities (“ESAs”) published a statement which clarifies the draft regulatory technical standards (“RTSs”) issued under the Sustainable Finance Disclosure Regulation (“SFDR”).
The statement was issued by the ESAs in order to promote a better understanding of the disclosures required under the RTSs and clarifies key areas of the SFDR such as:
- use of sustainability indicators;
- principle adverse impact disclosures;
- financial product disclosures;
- direct and indirect investments;
- taxonomy-related financial product disclosures;
- do not significantly harm disclosures; and
- disclosures for products with investment options.
The rules concerning disclosures under the technical standards of the SFDR will begin to apply on the 1st January 2023. The MFSA encourages financial market participants and financial advisors to gather the necessary information and adjust their practices to apply the specific requirements of the forthcoming delegated regulation.
In its circular published on the 28th June 2022, the Malta Financial Services Authority (“MFSA”) also notified relevant entities regarding the second set of Union law interpretation questions related to the SFDR and Taxonomy Regulation from the European Commission relating to the following:
- SFDR disclosures of principal adverse impacts, financial advisers, legacy financial products and good governance; and
- the scope of Articles 5-6 of the Taxonomy Regulation.
Lastly, the MFSA informed that a Supervisory briefing was issued by the European Securities and Markets Authority which provides non-binding guidance to National Competent Authorities (“NCAs”) regarding the supervision of sustainability-related disclosures and integration of sustainability risks, with the overall goal to promote common supervisory approaches among NCAs and to further increase transparency for investors as well as avoiding the practice of greenwashing.
Do not hesitate to contact us should you require any further information on the above.