financial services

News Update Investment Management

SFDR applicable to sub-threshold AIFMs ("kleine beheerders")
06 September 2021
6 September 2021

On the 26th of July, ESMA published the European Commission’s Q&A relating to the Sustainable Finance Disclosure Regulation (“SFDR”) which is relevant for ‘sub-threshold’ AIFMs (kleine beheerders) using the 'simply' AIFMD light regime (“Light AIFMs”). In this Q&A, the European Commission takes the position that Light AIFMs also fall under the scope of the definition of ‘financial market participant’ under SFDR. As a consequence, the entity and financial product related requirements of SFDR also apply to Light AIFMs.

Certain provisions in SFDR refer to the AIFMD requirements as included in Article 22 and 23 AIFMD with respect to pre-contractual disclosures to investors and its annual report. Light AIFMs, however, are not subject the AIFMD. The European Commission therefore highlights that such provisions in SFDR that link to the AIFMD must be applied by analogy: “information is to be included in pre-contractual and periodic documentation made available to end investors under national law”.

SFDR provides for extensive requirements with respect to sustainability disclosures. Not only does it impact the Light AIFM’s pre-contractual information (such as a prospectus), but also its periodic documentation (such as its annual report) and, where applicable, additional disclosures. This development has a significant impact on Light AIFMs, also in view of the fact that certain SFDR provisions already apply as from 10 March 2021. Light AIFMs must therefore take swift action now to ensure compliance.

Houthoff’s Investment Management team has extensive experience in advising on, drafting and reviewing SFDR disclosures and has designed Toolboxes that give a simplified overview of the relevant disclosures and outstanding to do’s.

If you require further information or if you need any advice on SFDR, please contact our main contact persons below. We are ready to help out.
Written by:
Oscar van Angeren

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