USKIF response: European Commission’s targeted consultation on the SFDR framework

In UKSIF’s response, which includes an open letter to the European Commission from UKSIF’s Chief Executive, we highlight the potential opportunities for the Commission to learn and draw directly from the FCA’s recently finalised SDR proposals. This includes developing a distinct, voluntary product classification system within the SFDR that is aligned to the UK’s SDR.

Our response states that a distinct classification system should explore new sustainability-related criteria and principles for investments products and strategies qualifying as sustainable under the SFDR, including importantly for those strategies that aim to support the transition towards a more sustainable future. While naturally there may be some differences across the EU’s and UK’s approaches to disclosures and fund labelling, we strongly emphasise the need for continued close co-operation between our respective regulatory authorities, and across different jurisdictions, such as the United States and elsewhere, as well as global standard-setting institutions, to promote harmonised approaches.

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