SFDR update: No minimum requirements for fund providers

More information from Europe as advisers wait for the UK's regulation

Beth Brearley
clock • 2 min read

There will be no minimum requirements for fund providers under the Sustainable Finance Disclosure Regulation (SFDR) the European Commission (EC) has confirmed.

Responding to questions posed by the European Supervisory Authorities (ESAs) in September 2022, the EC confirmed the SFDR would not "prescribe any specific approach to determine the contribution of an investment to environmental or social objectives" with firms left to "disclose their underlying assumptions". In the update, the EC specified that product providers must publish their methodology and explain how their investments do no significant harm. Funds labelled as sustainable must be invested in an economic activity that contributes to an environmental or social objective, with no si...

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