Summary of CySEC's Circular C594
Memo #48-2023
CySEC Circular No: C594
Date: 24/08/2023
Subject: ESMA launches a Common Supervisory Action (‘CSA’) with NCAs on the sustainability-related disclosures and the integration of sustainability risks in the Investment Fund Sector
Purpose: To inform the CUCITS MCs and CAIFMs that ESMA has launched the 2023 and 2024 Investment Fund Sector CSA with National Competent Authorities, on the sustainability-related disclosures and the integration of sustainability risks.
In Summary:
CySEC has issued the Circular C594 on 23/08/2023 to inform the Cyprus UCITS Management Companies and Self-Managed Cyprus UCITS (‘CUCITS MCs’) and the Cyprus Alternative Investment Fund Managers and Self-Managed Cyprus AIFs (‘CAIFMs’) (including Sub-Threshold CAIFMs) that the European Securities and Markets Authority (ESMA) has launched the 2023 and 2024 Investment Fund Sector CSA with national competent authorities (NCAs), on the sustainability-related disclosures and the integration of sustainability risks in the Investment Fund Sector.
In accordance with the Circular C594, the aim of the CSA 2023 is:
• to assess the compliance of supervised asset managers with the relevant provisions in the Sustainable Finance Disclosure Regulation (SFDR), the Taxonomy Regulation and relevant implementing measures, including the relevant provisions in the UCITS and AIFMD implementing acts on the integration of sustainability risks,
• to assess whether market participants adhere to applicable rules and standards in practice,
• to gather further information on greenwashing risks in the investment management sector,
• to identify further relevant supervisory and regulatory intervention to address the issue.
CySEC informs that it is planning to engage in relevant supervisory actions on samples of Investment Fund Managers. Such actions will allow CySEC to assess compliance regarding the integration of sustainability risks and disclosures.
This Circular C594 refers to the relevant regulatory framework for the purposes of the CSA 2023.
CySEC further informs that it expects Investment Fund Managers, to adhere to the content of this Circular C594 and get well attained with the content of the Regulatory Framework in order to ensure their compliance with the applicable legal obligations regarding the integration of sustainability risks and disclosures.
The ESMA announcement for the 2023 and 2024 Investment Fund Sector CSA can be found on the following link: https://www.esma.europa.eu/press-news/esma-news/esma-and-ncas-assess-disclosures-and-sustainability-risks-investment-fund.
Read the CySEC Circular C594
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