Key EU Developments for Asset Managers

Our next event will focus on critical and timely ESG developments in Europe. The presentation will be by two of the ESG committee members representing two key jurisdictions for European funds: Ireland and Luxembourg. David Walsh (Dillon Eustace) will give an overview of developments through the lens of the Irish regulator and Antoine Peter (Arendt), the view from Luxembourg. Both will also address general noteworthy EU developments. In particular, we will address the following:

ESG Asset Management Regulatory Exams. We often think of the EU as leading regulation and the SEC as leading regulatory enforcement. The SEC has run (and continues to run) ESG-focused inspections and examinations and brought high-profile ESG enforcement actions. Europe is picking up speed, notably following the announcement of the ESMA Common Supervisory Action (CSA) which is being rolled out across jurisdictions in the EU. We witness a rapid change of the regulatory scene with both the Irish and Luxembourg regulators launching similar (and very granular) ESG exams and data collections. We will address key areas of regulatory focus.

SFDR Brussels Update. The EU has received feedback by various participants around the broader SFDR Level 1 revisions. We will discuss the key trends of the feedback received and the EU Commission’s reaction thus far. This will be an up-to-date overview of the SFDR consultation process in Brussels. The new version of the SFDR RTS (SFDR Level 2 developments) will also be discussed as well as recent developments related to the EU taxonomy.

The upcoming Funds Name Rule. It has become a major source of concern for US managers managing global strategies. The EU Fund Name is similar to a certain extent to the US Name Fund Rule (both require 80% alignment of portfolio holdings) but the two rules diverge in many significant ways which we will explore in our meeting. Caught between these two different regimes, US managers are assessing their options.

In addition, we will discuss how rising anti ESG sentiment in the US is impacting the European landscape and also how certain European countries are taking diverging paths on certain green initiatives when their own self interests are at risk.

Our meeting will be held in person mid-town on March 28 from 4:30 p.m. to 6:30 p.m. at the Luxembourg House (17 Bleekman Street–Midtown East). The Luxembourg House is a beautiful historic mansion overlooking the East River).

Come join us for a lively discussion and pre-dinner drinks and snacks!

*Please note, this program is limited to 25 participants – ESG Committee Members will be given priority.