Regulation on sustainability‐related disclosures in the financial services sector – SFDR (‘Disclosure’, 2019/2088)

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Abstract
Regulatory Extracts from this
The disclosure regulation sets harmonized rules applicable to financial market participants and advisors regarding the integration and consideration of sustainability risks and sustainability negative impacts in their decision-making or investment advice processes investment advice; and the provision of sustainability-related information on financial products. This regulation offers the possibility to achieve more transparency on sustainability in the financial markets in a unified way and to ensure comparability.
Extracts
Art. 2: Definitions
Art. 3: Transparency of sustainability risk policies
Art. 6: Transparency of the integration of sustainability risks
Art. 9: Transparency of sustainable investments in pre‐contractual disclosures
Art. 12: Review of disclosures
Art. 13: Marketing communications
Art. 14: Competent authorities
Art. 17: Exemptions
Art. 18: Report
Art. 19: Evaluation
Art. 20: Entry into force and application
Article 21: Competent authorities
Definitions
alternative investment fund
AIFs as defined in point (a) of Article 4(1) of Directive 2011/61/EU;
alternative investment fund manager
an AIFM as defined in point (b) of Article 4(1) of Directive 2011/61/EU;
European long‐term investment fund
a fund authorised in accordance with Article 6 of Regulation (EU) 2015/760;
financial adviser
(a) an insurance intermediary which provides insurance advice with regard to IBIPs; (b) an insurance undertaking which provides insurance advice with regard to IBIPs; (c) a credit institution which provides investment advice; (d) an investment firm which provides investment advice; (e) an AIFM which provides investment advice in accordance with point (b)(i) of Article 6(4) of Directive 2011/61/EU; or (f) a UCITS management company which provides investment advice in accordance with point (b)(i) of Article 6(3) of Directive 2009/65/EC;
financial market participant
(a) an insurance undertaking which makes available an insurance‐based investment product (IBIP); (b) an investment firm which provides portfolio management; (c) an institution for occupational retirement provision (IORP); (d) a manufacturer of a pension product; (e) an alternative investment fund manager (AIFM); (f) a pan‐European personal pension product (PEPP) provider; (g) a manager of a qualifying venture capital fund registered in accordance with Article 14 of Regulation (EU) No 345/2013; (h) a manager of a qualifying social entrepreneurship fund registered in accordance with Article 15 of Regulation (EU) No 346/2013; (i) a management company of an undertaking for collective investment in transferable securities (UCITS management company); or (j) a credit institution which provides portfolio management;
financial product
(a) a portfolio managed in accordance with point (6) of this Article; (b) an alternative investment fund (AIF); (c) an IBIP; (d) a pension product; (e) a pension scheme; (f) a UCITS; or (g) a PEPP;
institution for occupational retirement provision
an institution for occupational retirement provision authorised or registered in accordance with Ar
insurance advice
advice as defined in point (15) of Article 2(1) of Directive (EU) 2016/97;
insurance intermediary
an insurance intermediary as defined in point (3) of Article 2(1) of Directive (EU) 2016/97;
insurance‐based investment product
(a)      an insurance‐based investment product as defined in point (2) of Article 4 of Regulation (EU) No 1286/2014 of the European Parliament and of the Council (19); or (b)     an insurance product which is made available to a professional investor and which offers a maturity or surrender value that is wholly or partially exposed, directly or indirectly, to market fluctuations;
investment advice
investment advice as defined in point (4) of Article 4(1) of Directive 2014/65/EU;
investment firm
an investment firm as defined in point (1) of Article 4(1) of Directive 2014/65/EU;
pan‐European Personal Pension Product
a product as referred to in point (2) of Article 2 of Regulation (EU) 2019/1238;
pension product
(a)      a pension product as referred to in point (e) of Article 2(2) of Regulation (EU) No 1286/2014; or (b)     an individual pension product as referred to in point (g) of Article 2(2) of Regulation (EU) No 1286/2014;
pension scheme
a pension scheme as defined in point (2) of Article 6 of Directive (EU) 2016/2341;
portfolio management
portfolio management as defined in in point (8) of Article 4(1) of Directive 2014/65/EU;
professional investor
a client who meets the criteria laid down in Annex II to Directive 2014/65/EU;
retail investor
an investor who is not a professional investor;
sustainability factors
environmental, social and employee matters, respect for human rights, anti‐corruption and anti‐bribery matters.
sustainability risk
an environmental, social or governance event or condition that, if it occurs, could cause an actual
sustainable investment
an investment in an economic activity that contributes to an environmental objective, as measured,
UCITS management company
(a)      a management company as defined in point (b) of Article 2(1) of Directive 2009/65/EC; or (b)     an investment company authorised in accordance with Directive 2009/65/EC which has not designated a management company authorised under that Directive for its management;
undertaking for collective investment in transferable securities
an undertaking authorised in accordance with Article 5 of Directive 2009/65/EC;