Controls of Asset Managers Companies by national authorities on SFDR and taxonomy


The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, launched the 6 July 2023 a Common Supervisory Action (CSA) with National Competent Authorities (NCAs) on sustainability-related disclosures and the integration of sustainability risks.

The goal is to assess the compliance of supervised asset managers with the relevant provisions in the Sustainable Finance Disclosure Regulation (SFDR), the Taxonomy Regulation and relevant implementing measures, including the UCITS and AIFMD implementing acts on the integration of sustainability risks.

Among the main objectives:

  • to assess whether market participants adhere to applicable rules and standards in practice

  • to gather further information on greenwashing risks in the investment management sector

  • and to identify further relevant supervisory and regulatory intervention to address the issue.

In 2023 and until Q3 2024, NCAs will undertake their supervisory activities and share knowledge and experiences through ESMA to foster convergence in how they supervise sustainability-related disclosures and sustainability risk integration by Asset managers.