Central Bank Details Issues With SFDR Level 2 Disclosures

At William Fry's 'Sustainable Finance in Practice for Fund Managers' event yesterday, the Central Bank's Director of Securities and Markets Supervision provided specific and detailed commentary on identified shortcomings of Article 8 and 9 funds' SFDR Level 2 disclosures.

The Director's comments on SFDR pre-contractual disclosures (PCDs), the first from the Central Bank since Level 2 measures took effect last January, highlight several new and some reoccurring issues and areas of concern, key of which are summarised below. In acknowledgement of the ongoing processes to amend SFDR, both the Level 1 Directive and Level 2 measures, the Director concluded noting that its findings may be considered as part of those processes but did not rule out domestic clarifications to address the issues in a timelier manner. A workshop with key stakeholders will shortly be hosted by the Central Bank to discuss its findings and identify ways to address Central Bank concerns.