Sustainable Finance – SFDR Revision

Responding to the European Commission’s, AMAFI stressed the need for improved legal clarity and consistency with other sustainability regulations (AMAFI / 25-46),.

It recommended extending the SFDR to products that are designed to integrate ESG features, such as structured products, to remove the legal uncertainty for issuers and to make the products more understandable to investors. To do this, however, it will be necessary to accommodate the specific characteristics of these instruments, which differ from the active investment products that are at the core of the SFDR’s governing principles. AMAFI is delighted that the French Sustainable Finance Institute and the European Structured Investment Products Association have now taken up this proposal, which it has long advocated for.

AMAFI also recommended clarifying the definitions of key notions, such as sustainable investment and principal adverse impact indicators, making the information provided to retail customers more understandable, and aligning the treatment of derivatives in sustainable performance indicators. It underscored the need to coordinate the ongoing SFDR, MiFID II, CSRD and Taxonomy reforms to promote overall consistency in the European framework.