Legal & Regulatory News

EU Commission delays application of regulatory technical standards for Sustainable Finance Disclosure Regulation

The EU Commission has written to the European Supervisory Authorities (ESAs) regarding the application of the Sustainable Finance Disclosure Regulation (SFDR) and related regulatory technical standards (RTS).

In March 2019, the co-legislators agreed an ambitious timeframe for the SFDR, requiring the development of most of the RTS by 30 December 2020 and the application of the SFDR's provisions from 10 March 2021. However, the unprecedented economic and market stress caused by the Covid-19 crisis has necessitated an extension of the deadline for the public consultation on the draft RTS.

The Commission has advised that all application dates are being maintained as laid down by the SFDR with effect from 2021, but in order to provide financial market participants and financial advisers adequate time for implementation, the RTS will become applicable at a later stage.