Regulatory Alerts2025-05-30
AFM response to SFDR Call for Evidence European Commission
The Dutch Authority for the Financial Markets (AFM) proposes simplifying the SFDR framework by establishing two primary product categories, "sustainable" and "transition," defined by objective minimum criteria and aligned with ESMA guidelines. The regulator warns against introducing a third "light" ESG category due to investor misinterpretation risks, instead advocating for clear disclosure of partial alignment percentages for products that do not meet full category standards. To reduce regulatory burden, the AFM recommends limiting the total number of categories, refraining from thematic classifications, and ensuring disclosure requirements apply to both retail and professional investment products to maintain consistency across the value chain.