The CSSF updates its FAQ on Sustainable Finance Disclosures Regulation

Through this FAQ update, the CSSF gave clarifications on two topics.

• The CSSF reminds industry participants that the requirement to provide the information required by the Commission Delegated Regulation (EU) of 2022/1288 of 6 April 2022 supplementing Regulation (EU) 2019/2088 of 27 November 2019 on sustainability-related disclosures in the financial services sector (SFDR RTS) in a manner that is notably easily accessible, simple, fair, clear and not misleading also applies to fund names.

Consequently, the CSSF expects financial market participants, whether they are disclosing under Articles 6, 8 or 9 SFDR to use fund names which are not misleading and aligned with the relevant fund’s investment objective and policy and with the relevant principles-based guidance on fund names in the ESMA Supervisory Briefing.

• The CSSF, in line with SFDR RTS and Questions related to SFDR published by the European Commission on 14 July 2021, reminds industry participants that a fund disclosing under Article 9 SFDR may next to “sustainable investments” also include investments or techniques used for hedging purposes or relating to cash as ancillary liquidity, provided that those are in line with the sustainable investment objective of the fund.

In this context, the CSSF considers that when used for hedging purposes, “Efficient portfolio management” (EPM) techniques fall within this “remaining portion” of the investment portfolio of funds disclosing under Article 9 SFDR.