The ESAs are proposing changes to the disclosure framework to address issues that have emerged since the introduction of SFDR. The authorities seek feedback on the amendments that envisage:
- extending the list of universal social indicators for the disclosure of the principal adverse impacts of investment decisions on the environment and society, such as earnings from non-cooperative tax jurisdictions or interference in the formation of trade unions;
- refining the content of other indicators for adverse impacts and their respective definitions, applicable methodologies, formulae for calculation as well as the presentation of the share of information derived directly from investee companies, sovereigns, supranationals or real estate assets; and
- adding product disclosures regarding decarbonisation targets, including intermediate targets, the level of ambition and how the target will be achieved.
Moreover, the ESAs propose further technical revisions to the SFDR Delegated Regulation by:
- improving the disclosures on how sustainable investments “do not significantly harm” the environment and society;
- simplifying pre-contractual and periodic disclosure templates for financial products; and
- making other technical adjustments concerning, among others, the treatment of derivatives, the definition of equivalent information, and provisions for financial products with underlying investment options.
The consultation will end on 4 July 2023.
To address the current shortcomings in AML/CFT supervision in the Union, the establishment of the European Anti-Money Laundering Authority (AMLA) has been proposed. Currently, AML/CFT supervision is carried out by Member States, but its quality and effectiveness are not uniform, and the approach to cross-border situations is not consistent.
The AMLA would be a European institution that would ensure a uniform level of AML/CFT supervision throughout the EU. This would be an important step to protect the integrity of the EU economy and financial system and the security of its citizens.
AMLA will become the core of an integrated AML/CFT supervision system, consisting of the Authority itself and national authorities with an AML/CFT supervision mandate. AMLA will take over the direct supervision and decision-making of the riskiest obliged entities in the cross-border financial sector. This will directly contribute to preventing money laundering and terrorist financing in the Union.
AMLA will improve the exchange of information between EU Financial Intelligence Units (FIUs) by providing a coordination centre for the joint analysis of cross-border suspicious activity reports.
AMLA will also be tasked to develop common reporting templates and standards to be used by EU FIUs, improving the consistency and effectiveness of actions to prevent and combat money laundering and terrorist financing.
Finally, the authority will also be mandated to draft regulatory and implementing technical standards, as well as AML/CFT policy guidelines and recommendations, providing advice and input to the Commission and the co-legislators to address risks from jurisdictions outside the EU.
