Sustainable Finance Disclosures Regulation | Insight Private Clients

Sustainable Finance Disclosures Regulation

The Sustainable Finance Disclosure Regulation (“SFDR”) is part of a package of legislative measures arising from the European Commission’s Action Plan on Sustainable Finance.

The SFDR sets out harmonised rules on transparency and aims to include environmental, social and governance (ESG) “sustainability” considerations and risks in the decision-making process of investors and asset managers in a consistent manner across the EU financial services sector.

Sustainable Investment

A sustainable investment product is where a product is sold as promoting environmental or social characteristics. It is envisaged that greater transparency and sustainability-related information will enable investors to compare financial products and to make informed investment decisions about ESG products.

The SFDR introduces additional disclosure obligations for manufacturers of financial products and financial advisers toward end-investors. The Regulations will require impacted firms to integrate sustainability into their investment processes and to consider the adverse impacts of their investments on sustainability factors.

Insight Private Clients

When providing advice Insight Private Clients does not consider the adverse impacts of investment decisions on sustainability. The Investment Companies, with whom we transact such business, have integrated responsible investment as part of their investment offering. Currently, specific and detailed information contained within such fund specifications is not always available in sufficient detail. As further information on the approach being taken by such Investment vehicle providers, including their external fund managers, becomes more detailed we intend reviewing this approach on an ongoing basis and at least annually.