FinDatEx publicly consults on update to its ESG template - EET V1.1.The update reflects industry feedback on the EET and provides for revisions to existing rules or field specifications. It does not contain any structural changes, i.e. no new regulations have been included. In the file that is the subject of the consultation, the changes are shown in red.
The consultation will last until 21 October 2022. The EET V1.1 has already been published and is also available through us if you are interested. FinDatEx will recommend that the EET V1.1 will be made available from 01 December 2022. There will be a transition period during which V1 and V1.1 will coexist - until 30 April 2023.
The most important changes in a nutshell:
-Existing fields have been changed from Optional to Conditional or Mandatory, due to the upcoming Level II measures as of 01.01.2023.
-The pre-contractual and periodic documents as well as the website product disclosures have become mandatory.
-Data fields referring to these documents have become mandatory for Art. 8 and Art. 9 products.
-PAIs have become mandatory
We are delighted, in particular for our insurance clients, that we as a member of the FinDatEx working group have been able to get the following addition through the meetings, which is now officially incorporated in the EET V1.1:
“Each insurance company needs to have the product disclosures (pre-contractual, periodic and web disclosures) translated and published in the language of the countries of distribution, for products to be distributed within the unit-linked insurance sector. Otherwise the insurance company is not allowed to distribute anymore Art. 8 or Art. 9 funds, starting from 01.01.2023 onwards.
The insurance industry decided to use only translated documents provided by asset managers to avoid any liability. There is no legal obligation for asset managers to deliver these translations. But if they don’t do it, insurers will not distribute the product. The insurance company needs a deeplink directly to the standalone PDF Annex document and not to the prospectus or annual report, as the insurance company cannot integrate a funds prospectus or annual report in their processes.”
For more details, see the cleversoft presentation at the BVI:
FinDatEx wants to point out that the amended SFDR RTS as recently published by the European Supervisory Authorities (ESAs) are not the subject of this update. The amended SFDR RTS, together with ESMA's recently revised MiFID Suitability Guidelines, will be included in the EET in the next update and work on them will start in the first half of 2023.
The cleversoft services will be adapted accordingly:
In the new EET V1.1, column G will explicitly indicate which data must be provided from 01 December 2022 in order to comply with the disclosure obligation on 01 January 2023 in due time. This includes the independent links to the pre-contractual, periodic and web disclosures on SFDR. cleversoft expects that the majority of asset managers will publish and deliver the above-mentioned links from 1 December at the earliest.
cleversoft will implement the new EET version in all related services in line with the timeline proposed by FinDatEx.