Fund managers stand to benefit from SFDR compliance

Racing lines

In light of the EU's impending Sustainable Finance Disclosure Regulation (SFDR) , which is set to take effect on 10 March 2021, two of IQ-EQ's ESG experts – Francesco Cavallini and Sarmad Naim – recently spoke to Fundeye about the significance of this new legislation.

Francesco highlighted how failure to comply with SFDR could negatively influence the ability of fund managers to raise capital across Europe, since investors will be less likely to allocate resources to strategies not constructively engaging in environmental, social and governance (ESG) activities. Meanwhile, drawing a comparison with AIFMD, Sarmad flagged the need for greater clarity around how SFDR should be applied to smaller fund managers and discussed the implications of Brexit in terms of UK compliance. Click below to read Francesco and Sarmad's insights in full:

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