On 24 March 2023 the Commission de Surveillance du Secteur Financier (CSSF) issued a press release requesting certain alternative investment fund managers (AIFMs), management companies (ManCos) of undertakings for collective investments in transferable securities (UCITS) and institutions for occupational retirement provision (ORPs) to participate in the data collection exercise relating to pre-contractual product disclosure information under Regulation (EU) 2019/2088 on sustainability-related disclosures in the financial services sector as amended (SFDR) and Regulation (EU) 2020/852 on the establishment of a framework to facilitate sustainable investment as amended (“Taxonomy Regulation“).
This exercise aims at collecting, in a digital way, information provided in precontractual documents issued by certain financial market participants (FMPs) and the financial products (Financial Products) they manage that are in scope of SFDR and Taxonomy Regulation.
For further information on what these developments mean for your organization, please get in touch with your usual Baker McKenzie contact.
Scope of the exercise
The following FMPs are required to provide the CSSF with information contained in the precontractual documentation of certain Financial Products they manage under SFDR and Taxonomy Regulation:
- UCITS ManCos, based in Luxembourg or in another Member State of the European Union, with regard to all Luxembourg-domiciled UCITS they manage
- Authorized AIFMs, based in Luxembourg, concerning all Luxembourg-domiciled regulated and unregulated alternative investment funds (AIFs) (including European long-term investment funds – ELTIFs) they manage
- Authorized AIFMs, based in another Member State of the European Union, in respect of all Luxembourg-domiciled regulated AIFs and Luxembourg-domiciled ELTIFs they manage
- Registered AIFMs, subject to the provisions of Article 3(3) of the law of 12 July 2013 on alternative investment fund managers (the AIFM Law), based in Luxembourg or in another Member State of the European Union, for all Luxembourg-domiciled regulated AIFs they manage
- IORPs, subject to the law of 13 July 2005 on institutions for occupational retirement provision in the form of a SEPCAV and an ASSEP
The CSSF clarified that the reporting shall apply to:
- All sub-funds of AIFs, IORPs and UCITS having adopted the umbrella structure
- All AIFs, IORPs and UCITS listed above and under the scope of the SFDR and Taxonomy Regulation, subject to disclosure requirements either under Articles 6 and/or 8 or 9 of SFDR.
This data collection exercise may also be performed, on a voluntary basis, by alternative investment fund managers that are not in the scope of the AIFM Law or benefit from an exemption in relation to all Luxembourg-domiciled regulated AIFs they manage.
Purpose and content of the reporting
The aim of the data collection exercise is to gather in a digital (and concise) way precontractual information contained in the documentation of AIFs, IORPs and UCITS, as well as more general SFDR and Taxonomy Regulation-related information. The volume and type of questions to be addressed in the reporting by FMPs are varied by type of disclosure regime under SFDR and are part of the template pre-contractual and periodic disclosures adopted by the European Commission in Commission Delegated Regulation (EU) 2023/363 of 31 October 2022.
A detailed list of the required information is provided in the annexes to the SFDR UCI Data collection – Practical and technical guidance appended to the press release.
FMPs are required to submit their initial report to the CSSF via a structured file through S3 (Simple Storage Service) protocol, which allows for testing of the submission and automation, or through a dedicated module available on CSSF’s eDesk platform as from 2 May 2023.
No matter the type of transmission, in-scope FMPs must submit their initial report no later than 15 June 2023 and are required to keep the information up-to-date.