Can SFDR Article 6(1) be used to avoid other EU sustainability-risk obligations?
SFDR Article 6(1); Commission Delegated Regulation (EU) No 231/2013; AIFMD Level 2 Regulation
In simple words
No. SFDR disclosures do not replace or cancel sustainability-risk obligations required under other EU rules. Even if an FMP states that sustainability risks are “not relevant” under Article 6(1), it must still comply with all other legal requirements to assess and consider sustainability risks, such as AIFMD due-diligence rules.
Official question
Can a financial market participant rely on disclosures under Article 6(1) second sub-paragraph of the SFDR (which allow financial market participants to disclose in pre-contractual disclosures that it “deems sustainability risks not to be relevant” for its investment decisions) in order to disapply other obligations on taking into account sustainability risks in EU law, such as Article 18(5) of Commission Delegated Regulation (EU) No 231/2013 which requires Alternative Investment Fund Managers to take into account sustainability risks when complying with their due diligence obligations?
Official answer
Disclosures under SFDR cannot override behavioural obligations in other EU legislation. In the example given, this means that the AIFM must comply with Article 18(5) of Commission Delegated Regulation (EU) No 231/2013 in addition to the disclosure requirements set out in SFDR.
Answered by
European Supervisory Authorities
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