CSSF issues communication on requirements according to SFDR and SFDR RTS.

Pre-contractual and periodic updates

Regulation/Requirement

Disclosure Obligation

Due date

Commission Delegated Regulation (EU) of 2022/1288 of April 6, 2022, supplementing Regulation (EU) 2019/2088 of November 27, 2019 on sustainability-related disclosures in the financial services sector (“SFDR RTS”)

Financial market participants to present by for financial products subject to Articles 8 and 9 of SFDR, precontractual and periodic disclosure information in the format of templates set out in the annexes of the SFDR RTS.

Mandatory website product disclosure of a separate website section titled, ’Sustainability-related disclosures’.

January 1, 2023

Regulation (EU) 2020/852 of June 18, 2020 on the establishment of a framework to facilitate sustainable investments - Taxonomy regulation (“TR”) - amending Regulation (EU) 2019/2088

Financial market participants for those financial products subject to Articles 8 and 9 of SFDR to provide transparency in precontractual documents and periodic reports with regard to the environmental objectives referred to in Article 9, points (c) to (f) of TR.

Updating pre-contract disclosures

Regulation/ Requirement

Obligation

Due date

Overdue updates to UCITS/ AIF prospectus/ issuing documents

Financial market participants which have not yet submitted to the CSSF the required updates to the prospectus/issuing documents of UCITS and/or AIFs in accordance with the provisions of the SFDR RTS and TR as set forth under Section 1 above, that the CSSF expects to receive the updated precontractual documents by October 31, 2022, at the latest.

October 31, 2022, to enable CSSF visa stamp for December 2022

UCITS updated prospectus including only sustainability related disclosures

Each duly updated UCITS prospectus, including only the sustainability related disclosure changes, should be filed for visa stamp with an accompanying RTS confirmation letter (based on template to be provided).

CSSF authorised AIF updated prospectus including only sustainability related disclosures

Each CSSF authorised AIF which, on the basis of Article 6(3) of SFDR, is obliged or intends to publish the precontractual disclosure templates in an annex to its issuing document/prospectus shall submit the issuing document/prospectus to the CSSF within the set deadline.

Periodic Disclosures

Regulation/Requirement

Obligation

Due date

Article 11 SFDR- UCITS and AIFs

Financial market participants must issue annual reports, for UCITS and AIFs, whether these AIFs are managed by a registered or authorised AIFM, shall comply with the product disclosure requirements in periodic reports laid down in article 11 of SFDR and further clarified by the SFDR RTS, including the information to be presented in an annex to the annual reports by using the mandatory templates.

January 1, 2023

UCITS and regulated AIFs (UCIs subject to part II of the 2010 Law, Specialised Investment Funds, Investment companies in Risk capital) domiciled in Luxembourg

The annual reports of these funds, including the required product disclosures in periodic reports shall be filed electronically with the CSSF.

Non-Luxembourg domiciled UCITS and AIFs

The CSSF also highlights that Luxembourg domiciled UCITS management companies and authorised AIFMs have to ensure that the annual reports of UCITS and AIFs they manage, and which are domiciled in other jurisdictions than Luxembourg have to comply with the periodic disclosure requirements laid down in the SFDR and SFDR RTS.

Additional Guidance

Regulation/Requirement

Obligation/ Clarification

Due date

Submission process

Each sub-fund/compartment should have a dedicated precontractual and periodic disclosure template.

The precontractual and periodic disclosure templates shall not be amended except as foreseen under Article 2 of the SFDR RTS, i.e., the size and font type of characters and the colours.

In case a financial market participant deems sections of the precontractual or periodic template not to be relevant for a given fund or sub-fund/compartment, those sections shall still be maintained in the precontractual and periodic disclosure template and shown as being not applicable (“NA”).

The CSSF expects financial market participants to present the required precontractual and periodic disclosure information exclusively in the dedicated templates, except for those disclosure items which are required under SFDR and not foreseen to be disclosed in the aforementioned templates.

Financial market participants are further informed that the European Supervisory Authorities envisage to publish shortly on their websites Word versions of the mandatory disclosure templates.

Forthcoming Regulatory Changes

Commission Delegated Regulation (EU) 2022/1214 of March 9, 2022

Regards nuclear energy and fossil gas activities, amending Commission Delegated Regulations (EU) 2021/2139 and 2021/2178 has been published on July 15, 2022, in the Official Journal of the European Union and will enter into force on January 1, 2023.

In this respect, the European Commission has invited the European Supervisory Authorities to propose by September 30, 2022, at the latest amendments to the SFDR RTS in relation to the information that should be provided in precontractual documents, on websites, and in periodic reports about the exposure of financial products to investments in fossil gas and nuclear energy activities.

CSSF may need to update the relevant templates in use as a result.

Effective January 1, 2023