IR – CBI publication about Sustainable finance (SFDR) and the asset management sector
The Central Bank of Ireland has published in November 2022 an information note titled “Sustainable finance and the asset management sector: Disclosures, investment processes and risk management”.
This paper sets out the findings of a gatekeeper review of fund documentation which was carried out to assess the implementation of the SFDR (level 1) and Taxonomy Regulation. The aim of the paper is to inform about the main disclosure issues encountered and outlines risks that the Central Bank has observed in terms of potential greenwashing or areas where there has been a lack of transparency or clarity. The note also sets out Central Bank expectations around the implementation of the next phase of SFDR (level 2) and provides a roadmap for how the Central Bank will supervise these requirements in the future.
At the end of July 2022, Irish investment funds (including sub-funds) classified as either article 8 or article 9 products under SFDR remain a small but significant part or Ireland’s funds sector.
Article 8 funds account for 17,5% of the Irish fund market by number and 25% of assets under management
Article 9 funds account for 2,5% of the number and 2% of the total net assets of Irish funds.
This percentage is expected to grow over time.