Cyprus regulator comments on new EU Sustainable Finance Disclosures Regulation
To recap the Sustainable Finance Disclosures Regulation (SFDR) came into force across the EU on 10 March 2021 and mandates that financial market participants (FMPs) such as asset managers and financial advisers are required to move capital towards more sustainable businesses. The SFDR forms part of a package of regulations on the Union’s Environmental, Social and Governance (ESG) policy.
On 8 March 2021, the Cyprus Securities and Exchange Commission (CySEC) issued a press release reinforcing its commitment to fostering compliance with sustainable finance standards, in accordance with the EU action plan for financing sustainable growth. CySEC has included a dedicated section on sustainable finance (accessible here), which contains information on SFDR.
In the release Demetra Kalogerou, Chair of CySEC states: “We have been clear that supervised entities must ensure full compliance with the SFDR disclosure obligations and with their ESG responsibilities in general, and we will challenge firms and take action where we see a risk of mislabelling, or misrepresenting in relation to sustainable finance to protect consumers and prevent them from being misled.”
The time is now for Cypriot based asset managers and other FMPs to consider their obligations under the SFDR.
CySEC’s press release can be found here.