Delegated Regulation (AIFMD) on risks to sustainability and sustainability factors 2021/1255

Commission Delegated Regulation (EU) 2021/1255 (AIFMD) Alternative Investment Fund Managers Directive of April 21, 2021 amending Delegated Regulation (EU) No. 231/2013 regarding sustainability risks and sustainability factors to be taken into account by managers of alternative investment funds (Text with EEA relevance).

This Regulation enters into force on the twentieth day following its publication in the Official Journal of the European Union. It applies from 1 August 2022.

Publication date

2. 8. 2021

This Regulation amends the existing Delegated Regulation (EU) No. 231/2013 a introduces new requirements for alternative investment fund (AIF) managers to consider sustainability risks in their investment decisions.

Main points of the regulation:

• Definition of sustainability risks and sustainability factors: The Regulation adopts definitions from Regulation (EU) 2019/2088 on the disclosure of information on sustainability in the financial services sector.
• Obligation to consider risks threatening sustainability: AIF managers must take these risks into account when fulfilling their duties, in particular when assessing risks and managing conflicts of interest.
• Disclosure of information: If AIFMs consider the main adverse impacts of investment decisions on sustainability factors, they must disclose how these impacts are taken into account in their policies.
• Resources and expertise: AIFMs must have the necessary resources and expertise to effectively integrate sustainability risks into their activities.
• Conflicts of interest: AIFMs must identify and manage conflicts of interest that may arise from the inclusion of sustainability risks.

The Regulation entered into force 20 days after its publication in the Official Journal of the European Union and it applies from 1 August 2022.

The reason for this regulation is to support the transition to a more sustainable economy in line with the objectives of the European Green Deal. The Regulation is intended to ensure that investors have sufficient information on sustainability risks and that AIF managers properly take these risks into account in their investment decisions.