Legislation introducing updated templates for pre-contractual and periodic disclosures under the Sustainable Finance Disclosure Regulation ("SFDR") applies from 20 February 2023. The updated templates, which are set out in annexes to the SFDR Level 2 regulation, have been amended to include disclosures relating to investments in nuclear and gas activities under the EU Taxonomy Regulation.
Fund managers have just recently completed an updating and filing process in order to comply with the SFDR Level 2 deadline of 1 January 2023, which required the pre-contractual disclosure annexes to be filed with the Central Bank of Ireland ("Central Bank") by 1 December 2022. It is therefore a positive development that the Central Bank has confirmed that it is introducing a fast-track filing process in relation to the updated annexes and has clarified that existing funds are expected to update their pre-contractual disclosures "as soon as possible and at the earliest available opportunity".
The applicable conditions are set out in a Central Bank publication issued on 20 February 2023 setting out the filing process in relation to the updated annexes.
New Fund Launches
- Must adopt the new templates for their pre-contractual disclosures immediately.
- The disclosures will be reviewed as part of the normal review process (ie, there will be no fast-track process).
Existing Funds
- Must update pre-contractual disclosures "as soon as possible and at the earliest available opportunity".
- No requirement to submit the disclosures for review, but it is possible instead avail of a fast-track filing process.
- The fast-track is available immediately.
- The fast-track will be time limited, but no closing date has been specified as yet.
- Minor SFDR-related amendments can be made as part of this update to the disclosures, but it is not possible to re-classify funds (for example, from Article 9 to Article 8 SFDR) using the fast-track.
Please get in touch with your usual Asset Management and Investment Funds Department contact or any of the contacts listed in this update should you require further information in relation to the Central Bank process or in relation SFDR implementation generally.