Broadridge has launched a end-to-end managed service solution to better support European asset managers in meeting their compliance obligations for the upcoming Sustainable Finance Disclosure Regulation (SFDR).
The SFDR, which comes into effect January 1, 2023, requires asset managers to consider and disclose in a consistent manner how ESG factors are adopted in their decision-making processes, including Pre-contractual Disclosure (PCD), Periodic Disclosure (PD) and Website Disclosure (WD) for Articles 8 and 9 funds.
Starting June 30, 2023, asset managers will also be required to produce a Principal Adverse Impact (PAI) statement to determine the impact of their investment decisions on sustainability factors.
For asset managers looking after EU-domiciled funds
Afzal Amijee, Commercial Director at Broadridge Fund Communication Solutions, said: “Asset managers continue to navigate a very complex and changing regulatory landscape and are under increasing pressure to disclose more ESG data to investors. We are excited to be bringing to market a fully managed end-to-end ESG solution comprising 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.”
Broadridge’s SFDR solution is addressed to asset managers looking after EU-domiciled funds, and UK funds being marketed to EU investors.
It supports 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.
The documents included in the SFDR solution 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 end points.
ICE launched data solution for EU SFDR
In April, Intercontinental Exchange launched a data solution for the European Union Sustainable Finance Disclosure Regulation (EU SFDR).
The EU SFDR requires more transparency and standardization in the products offered by asset managers in order to help investors compare among the growing number of investments with sustainable objectives.
ICE’s SFDR PAI Solution provides event-triggered updates for all of the mandatory adverse sustainability indicators applicable to investments in companies, sovereigns, and supranationals.
The regime requires specifically formatted disclosure on ESG-related indicators, including greenhouse gas emissions, board gender diversity, and energy consumption ratios.
These indicators are available in a formatted file or web viewing tool to clients as part of ICE’s SFDR PAI Solution, a service that links equity and fixed income securities to the closest disclosing corporate entity.