CSSF Provides Practical Guidance on SFDR

8 December 2022
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Key Takeaways:
  • The CSSF recently published an FAQ paper to provide some guidance on selected questions regarding the application of certain provisions of Regulation (EU) 2019/2088 (“SFDR”) to fund managers. The guidance is of particular relevance in practice since many funds and their managers are set up in Luxembourg. The CSSF emphasises that the paper shall be read in conjunction with Q&As on SFDR by the European Commission or the European Supervisory Authorities and will be updated going forward.
  • Among other questions, the CSSF clarifies that an exclusion strategy can be sufficient for an Article 8 SFDR-qualification only where it stands for a certain environmental or social characteristic. Of particular relevance in practice is also the statement that in the case of a delegation of portfolio management, the AIFM remains responsible for the website disclosure. The CSSF also comments on the question to what extent subsequent changes to the pre-contractual template can be “material”, requiring approval of the CSSF in the cases of regulated funds.