On 30 September, the Luxembourg financial sector supervisory authority, the Commission de Surveillance du Secteur Financier (the “CSSF“), issued a Feedback Report on the European Supervisory and Markets Authority’s (“ESMA“) Common Supervisory Action (the “CSA“) on sustainability risks and disclosures.
Investment fund managers (“IFMs“) are required by the EU’s Sustainable Finance Disclosure Regulation (the “SFDR“) and the EU’s Taxonomy Regulation to make certain sustainability related disclosures. These disclosures are both in respect of IFMs themselves (entity-level disclosures) as well as in respect of the investment fund products managed by the IFMs (product-level disclosures).
In 2023, ESMA launched the CSA with national competent authorities across the EU on sustainability-related disclosures and the integration of sustainability risks in the investment management sector with the aim of assessing compliance by IFMs with the sustainability disclosures, and to promote supervisory convergence by improving the comprehensibility of such disclosures.
In June 2025, ESMA published its report on the CSA. Now, the CSSF has issued its feedback report on the level of compliance by Luxembourg domiciled IFMs with the SFDR disclosures.
The CSSF has made a number of observations on the quality of the disclosures it examined as part of a sample of IFMs selected for review, along with recommendations for improvements and examples of good practice.
The CSSF asks all IFMs to conduct a comprehensive assessment of their compliance with the observations in the ESMA report and the CSSF feedback report, and to take necessary corrective measures. The assessment must be carried out by all IFMs regardless of whether they are managing ‘Article 8’ funds promoting environmental or social factors, or ‘Article 9’ funds having a sustainable investment objective. Thus, IFMs managing ‘Article 6’ funds (i.e. those investment funds not being Article 8 or Article 9 funds) should also assess compliance with the sustainability disclosure rules in light of ESMA’s and the CSSF’s respective reports.
