Qi Qi Dong December 2, 2021
In December 2021, the Commission de Surveillance du Secteur Financier (CSSF) issued a communication addressing regulatory requirements and introducing a fast-track procedure for UCITS in relation to Regulation (EU) 2020/852, known as the Taxonomy Regulation (TR), and Regulation (EU) 2019/2088, the Sustainable Finance Disclosure Regulation (SFDR).
Key Highlights:
- Transparency Requirements: The TR mandates financial market participants to provide transparency regarding environmental objectives, specifically climate change mitigation and adaptation, in pre-contractual disclosures by January 1, 2022.
- Fast-Track Procedure: To facilitate compliance, the CSSF implemented a fast-track process for UCITS prospectus updates. This procedure is limited to changes required under Articles 5, 6, and 7 of the TR. Submissions received by December 17, 2021, were prioritised for visa stamping before December 31, 2021.
- AIFs Guidance: Authorised Alternative Investment Fund Managers (AIFMs) were instructed to submit specific information required under SFDR and TR for each managed AIF. This information, disclosed to investors as per Article 23(1) of Directive 2011/61/EU, was to be sent to the CSSF via email.
- Use of Draft RTS Templates: The CSSF encouraged financial market participants to utilise the new pre-contractual and periodic product information templates provided in the draft Regulatory Technical Standards (RTS) dated October 22, 2021, on a best-effort basis during the transitional period.
This initiative underscores the CSSF’s commitment to ensuring timely compliance with evolving sustainability-related regulations, promoting transparency, and facilitating a smooth transition for financial market participants.
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