ESG-focused changes to Europe’s fund regulations and their impact on US managers

Making waves across the Atlantic Ocean

Environmental, social and governance (ESG) considerations have in recent years become an important point of focus for governments, financial institutions and corporations worldwide. While in some parts of the world this is mostly being driven by investor and shareholder demand, across a number of key regions the growing demand is being backed up by new and evolving guidelines and regulations.

While in the US recent focus has been on rejoining the Paris Agreement, the European Union (EU) has been busy at the forefront of ESG-related regulatory efforts and through its action plan for financing sustainable growth it intends to realize the objectives set by the UN’s 2030 Agenda for Sustainable Development.

Europe will see various ESG-driven regulatory changes. This includes the introduction of new regulations such as the recently implemented Sustainable Finance Disclosure Regulation (SFDR), as well as amendments to existing regulations like the Alternative Investment Fund Managers Directive (AIFMD), a framework that many non-European fund managers are already familiar with from marketing their funds to European investors.

In my latest article published by EisnerAmper, I aim to outline the scope and key considerations in relation to a few of the new requirements, in particular SFDR, and how they may impact US and other non-European managers. Click below to read:

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