SFDR Compliance

All disclosures have to be consistent across sub-funds. Accordingly, all the information in your pre-contractual documents, periodic reports and website must all match. You also have to align SFDR with the separate ESG data standard, which is called the EET (not to mention the CSSF JSON file). On top of that, many firms are seeing their fund prospectuses and annual reports grow in size just to meet disclosure obligations. Understanding the new language and concepts introduced by SFDR only makes things more difficult. In short, SFDR isn’t just about reporting. It’s about getting a complicated mix of data, documents, formats and expectations to work together consistently, transparently, and under regulatory pressure.

Firms must disclose their overall approach to sustainability risks and impacts (e.g. how ESG factors affect investment decisions, how they manage those risks).

Each fund or product must include specific ESG-related disclosures, depending on how it is marketed (e.g. whether it promotes ESG characteristics or has a sustainable investment objective).

ESG stands for Environmental, Social & Governance. It’s a framework or theme used by companies and investors to incorporate sustainability factors into decision-making.

ESG is not a law, but a way of thinking, evaluating, and investing with social and environmental impact in mind. SFDR is a European regulation that requires financial institutions such as investment funds, asset managers and insurers to publicly disclose how they incorporate ESG factors into their strategy, risk analysis, and products. In other words, SFDR defines exactly how and where ESG-related information must be reported.

EET stands for European ESG Template. It is a standardized data format used to share ESG-related information between product manufacturers (like fund managers) and distributors, platforms, or data vendors. The EET is not required by law, but it has become the de facto market standard. Without it, many distributors won’t accept your product for ESG distribution or reporting purposes.

The CSSF requires firms to submit information in a dedicated JSON format. This file must include the data disclosed in both periodic and pre-contractual disclosures, ensuring that the information is provided in a structured, machine-readable way.

While SFDR is the legal framework that defines what ESG information must be disclosed, the EET & CSSF JSON provides a practical way to share that information in a structured, machine-readable format.

We are adept at managing all aspects of SFDR compliance, including the necessary documentation, reporting, and disclosures. Our expertise ensures that your SFDR compliance is thorough, accurate, and fully meets all regulatory standards.

Our group of seasoned experts from the financial world, including former derivatives traders, asset managers, risk managers, and SFDR specialists, bring a treasure trove of practical experience.

We are committed to a quick delivery of your SFDR disclosures, EETs, and JSON files. This fast-paced approach means you can confidently meet your SFDR compliance obligations on time.

At RiskConcile, our focus is always on the client. Our in-house technology team is dedicated to customizing our software solutions to meet your unique requirements, guaranteeing that you receive the maximum benefit from our services.

RiskConcile stands out with a compelling value proposition at competitive price points. Our pricing strategy reflects our dedication to providing premium SFDR compliance solutions that are affordable and won't strain your budget.