Legal & Regulatory News

​European Commission answers European Supervisory Authorities' questions on the Sustainable Finance Disclosure Regulation

On 25 May 2022, the European Securities and Markets Authority (ESMA) published a set of answers to questions on the Sustainable Finance Disclosure Regulation ((EU) 2019/2088)(SFDR) and the Taxonomy Regulation ((EU) 2020/852). The answers were produced by the European Commission and form Commission Decision (C(2022) 3051), adopted on 13 May 2022 (the Commission Decision).

The Commission Decision comes in response to questions posed to the European Commission by the European Supervisory Authorities in December 2021, and covers:

• principal adverse impact disclosures and whether a financial market participant is able to forgo these considerations at entity level, but still consider them under Article 7 of the Sustainable Finance Disclosure Regulation for any financial products it manages;
• financial advice, including in relation to financial products;
• the integration of sustainability risks and rule for products that are no longer available;
• the scope of Articles 5 and 6 of the Taxonomy regulation; and
• good governance practices.

Click here to view the Commission Decision.

Click here to view the annex containing the list of questions and answers.