From: RegTech Analyst
EU Sustainable Finance Disclosure Regulation (SFDR) will be enforced from March 10, but experts warn that businesses are unprepared for the new legislation.
The new regulations will apply for investors and is part of the EU’s push towards a green economy.
However, Andy Pitts-Tucker, managing director at FinTech Apex Group’s ESG ratings and advisory, believes that investors may be unprepared for it.
“With only one month to go to the game changing implementation of the EU SFDR, the market is woefully unprepared for this landmark regulation,” he said. “At this stage, all financial market participants and advisors should understand how it applies to them and be making the necessary preparations for the new regulation – however, this is far from the reality.
“UK managers cannot rely on Brexit as an excuse – while this regulation hasn’t been included as part of the Brexit on-shoring process, many UK-based firms are likely to remain in the scope of the requirements in their capacity as AIFMs, for example when marketing funds into the EU or managing EU-based funds. This, combined with greater investor scepticism around ‘greenwashing’ practices, is pushing many in the market towards voluntary adoption.”
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