CSSF Extends Deadline for Submission of Digital Data for SFDR Compliance Monitoring
The Commission de Surveillance du Secteur Financier (CSSF) has announced an extension of the deadline for submitting digital data as part of the data collection exercise to monitor compliance with Regulation (EU) 2019/2088 on sustainability-related disclosures in the financial services sector (SFDR). This decision aims to provide financial market participants with additional time to comply with the new requirements.
According to the latest guidelines, financial market participants are now required to provide the relevant information on pre-contractual disclosures on a best-effort basis by June 15, with a final deadline set for October 31, 2023. This extension is intended to give stakeholders in the financial sector sufficient time to adequately prepare and collect the necessary information.
The SFDR regulation, adopted by the European Union, aims to enhance transparency and disclosure of sustainability-related information in the financial sector. It requires financial market participants to integrate environmental, social, and governance (ESG) considerations into their decision-making processes and provide clear and accurate information to investors regarding the sustainable impact of their financial products.
To comply with this regulation, financial market participants need to collect specific data about their financial products, including sustainability-related risks, the sustainability criteria used, and the measures taken to mitigate risks. This information must then be communicated to investors in a transparent and accessible manner.
The extension of the deadline for submitting digital data will enable financial market participants to ensure they have sufficient time to implement proper procedures and collect the requested information. This will contribute to achieving more comprehensive and accurate compliance with the SFDR requirements.
In conclusion, the CSSF has extended the deadline for submitting digital data for SFDR compliance, granting financial market participants additional time to comply with the new requirements. This decision aims to enhance transparency and disclosure of sustainability-related information in the financial sector, thereby enabling investors to make informed decisions and promoting more sustainable practices within the financial industry.