Hello everyone,
Sharing an interesting post from our community member Rita Hunter, Regulatory Partner and Co-Head of Sustainable Finance & Investment with Hogal Lovells.
In September 2024, the Danish Financial Supervisory Authority ("DFSA") conducted thematic inspections of three investment managers focusing on compliance with sustainable investment requirements for products with sustainable investment objectives (Article 9 funds) under the Sustainable Finance Disclosure Regulation ("SFDR"). It published individual statements for each of the investment managers stating that each had one or more significant shortcomings in processes and identifying insufficient incorporation of the requirements of the SFDR into investment processes. These shortcomings highlight a failure in the funds reviewed to implement processes to address all of the mandatory indicators to measure adverse impacts on sustainability factors ("PAI indicators"), ensure no significant harm to any environmental and social objectives and ensure good governance practices in investee companies. It is particularly helpful as we have not previously seen a European regulator give specific guidance on compliance with Article 9 requirements, including the Do No Significant Harm assessment. In the link below, we set out some of the lessons asset managers can take from this.
Click here to read more:
https://lnkd.in/eKvSh5nX
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Aya Pariy
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