Whitepaper: What is the difference between an Article 8 and Article 9 fund?
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The primary aim of the SFDR is to tackle greenwashing in the financial sector. It was designed purely to be a series of disclosure requirements, but the reality is that it is also being used by the investment community as a labelling regime. Investors use Article 6, 8, and 9 funds as labels. These distinctions help them understand the ESG performance of the funds they are considering investing in.
All funds are automatically classified under Article 6, unless proven otherwise. Naturally, there are further disclosure requirements for Article 8 and 9 funds, as these are the only funds that can advertise ESG features.
However, the difference between an Article 8 and Article 9 fund can be unclear for fund managers.
In this 1-page document, our experts provide fund managers with a clear understanding of the requirements for Article 8 and 9 classifications.
*On the 4th of December, the European Supervisor Authorities published a report containing proposed amendments to SFDR’s regulatory technical standards.
The proposals are:
- Additional disclosures for sustainable investments
- Introducing new, and specifying existing, PAIs
- New disclosures on decarbonisation targets
- Revisions to disclosure templates
The European Commission will now take until March 2024 to decide on the proposals. To find out more, read the report or contact a member of our team. The information in this whitepaper is up to date as of December 2023.
The primary aim of the SFDR is to tackle greenwashing in the financial sector. It was designed purely to be a series of disclosure requirements, but the reality is that it is also being used by the investment community as a labelling regime. Investors use Article 6, 8, and 9 funds as labels. These distinctions help them understand the ESG performance of the funds they are considering investing in.
All funds are automatically classified under Article 6, unless proven otherwise. Naturally, there are further disclosure requirements for Article 8 and 9 funds, as these are the only funds that can advertise ESG features.
However, the difference between an Article 8 and Article 9 fund can be unclear for fund managers.
In this 1-page document, our experts provide fund managers with a clear understanding of the requirements for Article 8 and 9 classifications.
*On the 4th of December, the European Supervisor Authorities published a report containing proposed amendments to SFDR’s regulatory technical standards.
The proposals are:
- Additional disclosures for sustainable investments
- Introducing new, and specifying existing, PAIs
- New disclosures on decarbonisation targets
- Revisions to disclosure templates
The European Commission will now take until March 2024 to decide on the proposals. To find out more, read the report or contact a member of our team. The information in this whitepaper is up to date as of December 2023.
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