ESA Joint Committee · sfdr-5 Final

Can a financial market participant rely on disclosures under Article 6(1) second sub- paragraph of the SFDR (which allow financial market participants to disclose in pre- contractual disclosures that

Regulation
SFDR
Answered
2024-07-25
Answer provided by
ESAs (EBA, ESMA, EIOPA)
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Joint Committee Q&As are published in consolidated PDF documents without explicit question/answer delimiters. Section boundaries below are identified automatically and may occasionally be imprecise.

Question

Can a financial market participant rely on disclosures under Article 6(1) second sub- paragraph of the SFDR (which allow financial market participants to disclose in pre- contractual disclosures that it “deems sustainability risks not to be relevant” for its investment decisions) in order to disapply other obligations on taking into account sustainability risks in EU law, such as Article 18(5) of Commission Delegated Regulation (EU) No 231/2013 which requires Alternative Investment Fund Managers to take into account sustainability risks when complying with their due diligence obligations?

Answer

Disclosures under SFDR cannot override behavioural obligations in other EU legislation. In the example given, this means that the AIFM must comply with Article 18(5) of Commission Delegated Regulation (EU) No 231/2013 in addition to the disclosure requirements set out in SFDR.
View original on ESA Joint Committee (EBA, ESMA, EIOPA) ↗

This Q&A is published by ESA Joint Committee (EBA, ESMA, EIOPA) and is non-binding. It does not constitute legal advice. Updated weekly from official ESA sources.

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