European Commission announces intention to delay SFDR RTS application to July 2022
9th July 2021
As reported by Reuters, in a letter to the European Parliament, we understand that the European Commission’s Head of Financial Services Unit, John Berrigan, stated that the application of the Regulatory Technical Standards (RTS) to SFDR will be delayed by a further 6 months (1 July 2022) in order to avoid a last minute rush by financial market participants to comply with the detailed RTS.
The extra six months allow financial market participants more time to implement the detailed requirements (including specifications as to the content, the methodologies and the presentation of disclosures required under the Level 1 SFDR) and for a smoother transition to the use of the new disclosure documents as well as granting more time to comply with the regulatory deadline for the approval of pre-contractual documentations that may be required by local national competent authorities.
Given the existing uncertainties as to some of the disclosure elements and questions still not been answered, this is a welcome development.
Nonetheless, it remains unclear whether the Taxonomy RTS will be delayed as well and what exactly will mean that “all 13 of the RTS will now be bundled together in once delegated act”.
It seems that whilst financial market participants may breathe, they may not slow down their compliance efforts just yet.
Zeidler’s legal and regulatory experts are actively monitoring the situation. For additional information on this matter, please contact us.