On 17th November 2022, the European Securities and Markets Authority ("ESMA"), the EU's securities markets regulator, published Questions and Answers ("Q&A") on Commission Delegated Regulation (EU) 2022/1288 (the "SFDR RTS"), which will come into force on 1 January 2023. The Q&A has been prepared by the three European Supervisory Authorities, namely ESMA, the EBA and EIOPA.

The Q&A in all cover a range of areas, including:

  • Current value of all investments in Principle Adverse Impacts ("PAI") and Taxonomy-aligned disclosures;
  • PAI disclosures;
  • Financial product disclosures;
  • Multi-option products;
  • Taxonomy-aligned investment disclosures;
  • Financial advisers and execution-only Financial Market Participants.

The Q&A tackles a number of important questions in relation to interpretation as well as other practical issues, including those relating to the use of templates.

Financial Market Participants should take note of the Q&A in preparation for any eventual filings of SFDR RTS related disclosures with the MFSA, once further guidance is issued.

The Q&As can be accessed here.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.