On the 24 March 2023, the Commission de Surveillance du Secteur Financier (“CSSF”) published a notice about the launch of a data collection exercise in relation to the precontractual product disclosure information required by Regulation (EU) 2019/2088 on sustainability-related disclosures in the financial services sector (“SFDR”) and Regulation (EU) 2020/852 on the establishment of a framework to facilitate sustainable investment (“Taxonomy Regulation”).
The SFDR provides harmonised rules on the transparency disclosures required in relation to the provision of sustainability-related information with respect to financial products. The Taxonomy Regulation provides additional disclosure requirements with regards to those financial products making sustainable investments with environmental objectives. Investment fund managers and institutions for occupations retirement schemes are required to abide by the disclosure requirements under the SFDR and the Taxonomy Regulation, as applicable.
Through the data collection exercise, the CSSF is seeking to collect, in digital format, information contained in such precontractual disclosure documents and/or templates.
The financial market participants (the “FMPs”) that are required to participate and complete the data collection exercise are the following:
- UCITS management companies, based in Luxembourg or in another Member State of the European Union, in relation to all Luxembourg-domiciled UCITS they manage;
- authorised AIFMs, based in Luxembourg, in relation to all Luxembourg-domiciledregulated and unregulated AIFs (including ELTIFs) they manage;
- authorised AIFMs, based in another Member State of the European Union, in relation to all Luxembourg-domiciled regulated AIFs, as well as Luxembourg-domiciled unregulated AIFs (only when they qualify as ELTIFs) they manage;
- registered AIFMs, subject to Article 3(3) of the Law of 12 July 2013 (the “2013 Law”), based in Luxembourg or in another Member State of the European Union, in relation to all Luxembourg-domiciled regulated AIFs they manage; and
- IORPs, subject to the Law of 13 July 2005.
FMPs subject to Articles 2(2) or 3(1) of the 2013 Law can participate in the data collection exercise on a voluntary basis in relation to any Luxembourg-domiciled regulated AIF they manage.
The data collection exercise relating to the SFDR/Taxonomy Regulation’s pre-contractual disclosures is mandatory for all sub-funds of a UCITS/AIF/IORP subject to the scope as defined above. The data is to be completed and provided to the CSSF for each fund/sub-fund, regardless of the regime applicable to those under SFDR (i.e., SFDR Article 6, Article 8 or Article 9).
FMPs remain responsible to ensure that the information provided is being kept up-to-date at all times. FMPs must update the data reported under the SFDR data collection by transmitting subsequent declarations in case of any changes.
The deadline for submission of the initial report is 15 June 2023.
The data can be submitted to the CSSF via the following channels:
- The submission of a structured file through S3 (“simple storage service”) protocol, which is already available.
- The submission via eDesk for manual input by FMPs for each fund/sub-fund they manage. This solution will be made available as of 2 May 2023.
This article was written by Dr Neil Bezzina (Associate, Investment services & funds).
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