SFDR data collection exercise for investment fund managers (IFMs) on regulatory requirements in relation to Regulation (EU) 2019/2088 on sustainability-related disclosures in the financial services sector (SFDR)

This Communiqué follows up on the CSSF communiqué published on 27 July 2022 announcing the intention of the CSSF to launch a data collection exercise related to SFDR.

The objective of the present communiqué is to provide industry participants with information on the launch of the first part of this data collection, which mainly focuses on the collection of information regarding organisational arrangements of IFMs.

SFDR requires IFMs that qualify as financial market participants (FMP(s)) and/or financial advisers (FA(s)) to comply with a set of rules regarding the integration of sustainability risks in their activities by 10 March 2021. SFDR also outlines the mandatory website disclosure requirements applying to IFMs. Commission Delegated Regulation (EU) 2022/1288 of 6 April 2022 supplementing SFDR (SFDR RTS), applying as from 1 January 2023, provides further details on the transparency to be ensured by FMPs and FAs.

In consideration of the above, the CSSF expects the organisational arrangements of IFMs to take due account of the integration of sustainability risks, notably in terms of human resources and governance, the investment decision or advice process, the remuneration and risk management policies and the management of conflicts of interest. The current data collection is necessary to allow the CSSF to fulfill its supervisory duties, notably in relation to the assessment of the compliance of IFMs with the requirements applicable under SFDR and SFDR RTS.

The CSSF is hereby requiring Luxembourg-domiciled

(i) UCITS management companies;

(ii) investment companies which did not designate a management company within the meaning of Article 27 of the Law of 17 December 2010 relating to undertakings for collective investment (i.e. “SIAGs”);

(iii) authorised AIFMs, including internally managed alternative investment funds within the meaning of point (b) of Article 4(1) of the Law of 12 July 2013 on alternative investment fund managers (i.e. “FIAAGs”);

(iv) managers of a qualifying venture capital fund registered in accordance with Article 14 of Regulation (EU) No 345/2013 and

(v) managers of a qualifying social entrepreneurship fund registered in accordance with Article 15 of Regulation (EU) No 346/2013

to complete a dedicated questionnaire via the launch of a new eDesk module, “SFDR-IFM disclosures” as from 2 February 2023. The deadline for submission of the questionnaire is 2 March 2023.

After the initial declaration and in case of changes, IFMs shall remain responsible to ensure that the information provided is being kept up-to-date. A specific update function (“Create update declaration”) is available under the new eDesk module to allow the amendment of information initially submitted.

The questionnaire must be completed and submitted by an eDesk user linked to the IFM.

All information related to the creation of user account(s) is detailed in the lower section of the eDesk portal homepage (https://edesk.apps.cssf.lu).

Any question should be addressed to ifmsfdr@cssf.lu.

The current data collection exercise will be extended in the near future to collect information contained in the PAI statements and in the precontractual and periodic disclosure templates. Further details on timing and practical proceeding of the data collection will be communicated at a later stage.

The CSSF also reminds industry participants that the launch of a Common Supervisory Action exercise (CSA) in relation to sustainability risks and disclosures is currently under discussion at ESMA level. This CSA is contemplated to start in the course of 2023 and will be focusing on both SFDR Level 1 and Level 2 provisions as well as the requirements outlined in the ESMA Supervisory Briefing on Sustainability risks and disclosures in the area of investment management.