The European Commission has recently adopted a Delegated Regulation (the “Regulation”) containing the regulatory technical standards to be observed by financial market participants and financial advisors. The Regulation should be followed when disclosing sustainability-related information under the Sustainable Finance Disclosure Regulation (“SFDR”).
Following transmission to the European parliament and council for scrutiny, the Regulation will be officially published in the official journal of the European Union upon approval by the co-legislators. The exact content, methodology and presentation of the information to be disclosed are all elements which are identified within the Regulation, which is set to become applicable from the 1st January 2023.
In parallel with the aforementioned Regulation, reference should be given to the Updated Joint Supervisory Statement (the “Statement”) on the application of the SFDR. The Statement includes amongst others the following elements:
- New application timelines;
- Expectations about the explicit quantification of the product disclosures under Article 5 and 6 of the taxonomy regulation; and
- The use of estimates.
Financial market participants and financial advisors are encouraged by the Malta Financial Services Authority to make use of the current interim period until the 1st January 2023 to prepare for the application of the Regulation. In addition, relevant SFDR and taxonomy regulation measures should be applied according to the application dates outlined in the Statement.
Do not hesitate to contact us should you require any further information or assistance on the above.