The EU Disclosure Regulation—one minute guide
Produced in partnership with Lora Froud of Macfarlanes and Tiffany Cox of Macfarlanes
The EU Disclosure Regulation—one minute guide

The following Financial Services practice note produced in partnership with Lora Froud of Macfarlanes and Tiffany Cox of Macfarlanes provides comprehensive and up to date legal information covering:

  • The EU Disclosure Regulation—one minute guide
  • What is the Disclosure Regulation?
  • Impact of the Disclosure Regulation on the industry
  • Application of the Disclosure Regulation obligations
  • Scope of the Disclosure Regulation
  • Brexit implications
  • New concepts
  • Next steps
  • Recent sustainable finance and ESG developments

The EU Disclosure Regulation—one minute guide

This one minute guide discusses the scope, impact, new concepts and next steps of the EU Disclosure Regulation.

What is the Disclosure Regulation?

Regulation (EU) 2019/2088 on sustainability-related disclosures in the financial services sector (known as the Disclosure Regulation, environment, social and governance (ESG) Regulation or SFDR), which is part of a broader legislative package under the European Commission’s Sustainable Finance Action Plan.

Impact of the Disclosure Regulation on the industry

It requires firms to make strategic business and policy decisions regarding their approach to ESG which must be disclosed on the firm’s website and in pre-contractual and periodic disclosures. Although the focus of the Disclosure Regulation is the provision of information to investors, clients and other stakeholders, it is clear that the preparation of accurate and comprehensive information on ESG will necessitate significant system and control changes, and a material allocation of resource for many firms.

Application of the Disclosure Regulation obligations

Most of the obligations will come into force on 10 March 2021.

The detailed requirements of a number of these obligations are intended to be fleshed out by regulatory technical standards (RTS) being developed by the European Securities and Markets Authority, the European Insurance and Occupational Pensions Authority and the European Banking Authority (the ESAs). The RTS were originally planned to come into effect on 10 March 2021, but on 30 October

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