To better help asset managers of European funds be prepared for the upcoming compliance requirements and regulatory disclosure obligations under the Sustainable Finance Disclosure Regulation (SFDR), global Fintech leader Broadridge Financial Solutions, Inc. (NYSE:BR) has launched a new Environmental, Social and Governance (ESG) reporting solution.
“Asset managers are navigating a very complex and changing regulatory landscape and are under increasing pressure to disclose more ESG data to investors,” said Paul Poletti-Gadd, Chief Solutions Officer at Broadridge Fund Communication Solutions. “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.”
The new solution, which enables disclosure through the European ESG Template (EET), is a timely expansion of Broadridge’s multi-jurisdictional regulatory fund reporting suite used by asset managers globally. The end-to-end EET outsourcing solution has rigorous evidential control systems to support asset managers from pre-production through to dissemination, providing complete support for all aspects of the EET, encompassing composition, ongoing maintenance and dissemination to distribution channels. With a track record of over two decades of subject matter expertise, the solution is based on already established processes for managing regulatory reporting for funds and an existing dissemination network to industry end points.
The SFDR regulations require Principal Adverse Impact (PAI) information to be publicly disclosed effective January 2023, as well as from amendments to both MiFID II and the Insurance Distribution Directive (IDD) coming into effect in August 2022. The EET, designed by Financial Data Exchange (FinDatEx), 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.
Developed through several Client Working Group sessions to ensure that it has the benefit of various industry perspectives, the Broadridge managed solution for EET will enable industry participants to be compliant by the deadlines with relative ease. It’s an easy addition to existing Broadridge services, including European PRIIPs Template, European MiFID Template, Solvency II Tripartite Template and many more across the European jurisdictions, delivered from its centralized data platform and regulatory services platform.