Industry body says ESMA should reclassify SDFR labels

The Securities Market and Stakeholder Group (SMSG) has argued in a letter to the ESMA that there is currently too much overlap between Article 8 and Article 9 funds and that an unacceptable number asset managers are misusing both Article 8 and Article 9 labels for sustainable strategies because the latter has more stringent ESG requirements than the former.

The Securities Market and Stakeholder Group (SMSG) argued in a letter to the regulator that there is currently too much overlap between Article 8 and Article 9 funds and that too many asset managers are misusing both Article 8 and Article 9 labels for sustainable strategies because the latter has more stringent ESG requirements than the former.

Due to this, SMSG is advocating that Article 9 funds become the “sole carriers of a green classification”, as the criteria for ESG criteria under Article 8 funds is “so broad that with some degree of measurability, virtually anything can fit into it”.

Read more: https://www.funds-europe.com/news/esma-urged-to-reclassify-sfdr-labels