Scientific Beta

IPE: "Recent events have shown how anticipating forthcoming clarification on the application of a text that has been published since 2019 has created such confusion that many asset managers have had to reclassify a large number of their funds from Article 9 to Article 8. If the ultimate goal of a regulation is to provide a strong and credible message to the market to favour good behaviour, we can already affirm that the objective has failed with respect to SFDR."

IPE 16/12/2022

By Noël Amenc, senior advisor at Scientific Beta, associate professor of finance at EDHEC Business School, and affiliate member of EDHEC-Risk Climate Impact Institute

"(...) Recent events have shown how anticipating forthcoming clarification on the application of a text that has been published since 2019 has created such confusion that many asset managers have had to reclassify a large number of their funds from Article 9 to Article 8. If the ultimate goal of a regulation is to provide a strong and credible message to the market to favour good behaviour, we can already affirm that the objective has failed with respect to SFDR. (...) By proceeding by an accumulation of rules rather than thinking about the objectives and principles of regulation, the European Union may be failing to incentivise sustainable finance in the right way. (...)"