Broadridge Financial Solutions launched a new end to end managed service solution to support European asset managers in meeting their mew compliance obligations under the Sustainable Finance Disclosure Regulation (SFDR).
SFDR’s level 1 regulatory technical standard (RTS) has been applied since March 2021 and requires financial institutions to report on the environment, social and governance (ESG)-related activity of the sectors and companies they invest in.
Starting 1 January 2023, SFDR level 2 will ask asset managers to consider and disclose in a consistent manner how environment, social and governance (ESG) factors are adopted in their decision-making processes.
For Articles 8 and 9 funds, this includes a pre-contractual disclosure (PCD), periodic disclosure (PD) and website disclosure (WD).
In addition from 30 June 2023, asset managers will also be obliged to produce a principal adverse impact (PAI) statement to determine the impact of their investment decisions on sustainability factors.
“Asset managers continue to navigate a very complex and changing regulatory landscape and are under increasing pressure to disclose more ESG data to investors,” said Afzal Amijee, commercial director at Broadridge Fund Communication Solutions.
He noted that its fully managed end-to-end ESG solution comprises SFDR and the European ESG Template (EET) reporting requirements.
“This will enable asset managers to efficiently provide data by leveraging automation and existing network links amongst fund distribution channels to ensure they have data and regulatory documents at the right time for their end clients,” he added.
Designed for asset managers looking after EU-domiciled funds, and UK funds being marketed to EU investors, the solution offers comprehensive support for all aspects of the composition, production, translation, and hosting of required disclosures under SFDR — including PCD, PD, WD and PAI — as well as maintenance and distribution of the European ESG templates.
Documents can be translated into 35 different languages in line with requirements, and distributed across a variety of channels, including embedded URLs or a document library, for dissemination to platforms or additional endpoints.
