ESMA and NCAs to assess disclosures and sustainability risks in the investment fund sector

ESMA and NCAs are collaborating on a CSA to evaluate sustainability-related disclosures and the integration of sustainability risks in the investment fund sector. The initiative aims to ensure compliance with the SFDR, TR, UCITS and AIFMD implementing measures.
ESMA has developed a common methodology for NCAs to assess the adherence of asset managers to applicable rules and standards, gather information on greenwashing risks, and identify necessary regulatory interventions. Converging supervision of incorrect and misleading disclosures is crucial for transparency, and it is a key priority for NCAs (eventid=17879). The CSA seeks to enhance the comprehensibility of ESG disclosures by asset managers and provide insights into greenwashing risks. NCAs will continue their supervisory activities and knowledge sharing through ESMA until the third quarter of 2024.