A European Financial Regulator expects stricter and more detailed SFDR disclosures are expected from investment fund industry

The Luxembourg financial regulator, the Commission de Surveillance du Secteur Financier (CSSF), published a report delineating its observations and recommendations on the implementation of sustainability-related provisions in the investment fund industry.

The report covers advancements in the implementation of the Sustainable Finance Disclosure Regulation (SFDR) and its accompanying Regulatory Technical Standards (RTS), the Taxonomy Regulation and the European Securities and Market Authority (ESMA) Fund Name Rule. In its report, the CSSF clarifies how entities should disclose, stressing the need to provide “sufficiently detailed product-level information”. Interestingly, in addition to providing guidance and expectations, the CSSF provides cases that do not satisfy the disclosure requirements and that it considers insufficient.