Regulatory Alerts2024-05-29
SFDR: Clear Templates Needed for Sustainable Investing
The Dutch Authority for the Financial Markets (AFM) issued a supervisory report requiring financial firms to improve the clarity and completeness of SFDR disclosures, particularly through the proper use of standardized templates. The report finds that while most entities comply with Level 1 baseline requirements, significant gaps remain in Level 2 template usage, data availability for negative impact indicators, and the explanation of sustainability risks on returns. The AFM mandates immediate corrective action for non-compliance and provides specific guidance to enhance transparency for investors and advisors.
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