Broadridge has announced the launch of a new environmental, social and governance (ESG) reporting solution as upcoming Sustainable Finance Disclosure Regulation (SFDR) looms.
The service will assist asset managers of European funds in preparing for compliance requirements and regulatory disclosure obligations of SFDR, which are expected to take effect in 2023.
The expansion of Broadridge’s multi-jurisdictional regulatory fund reporting suite will also enable disclosure through the European ESG Template (EET).
Broadrige comments that its end-to-end EET outsourcing solution has “rigorous evidential control systems” to support asset managers from pre-production through to dissemination, providing support for all aspects of the EET, encompassing composition, ongoing maintenance and dissemination to distribution channels.
The SFDR regulations require Principal Adverse Impact (PAI) information to be publicly disclosed from January 2023. Additionally, there are amendments to both MiFID II and the Insurance Distribution Directive (IDD) coming into effect in August 2022.
The EET will facilitate the necessary exchange of data between product manufacturer and distributor for the purpose of fulfilling ESG-related regulatory requirements contained in the SFDR, relevant provisions of the Taxonomy Regulation, and the relevant delegated acts complementing MiFID II and IDD.
Speaking on the announcement, Paul Poletti-Gadd, chief solutions officer at Broadridge Fund Communication Solutions, comments: “Asset managers are navigating a very complex and changing regulatory landscape and are under increasing pressure to disclose more ESG data to investors.
“Broadridge’s new ESG solution enables asset managers to efficiently provide data by leveraging automation and existing network links amongst fund distribution channels to ensure they have data and regulatory documents at the right time for their end clients.”
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