Sustainable Finance Disclosure Regulation

Under Regulation (EU) 2019/2088 of the European Parliament and of the Council on sustainability-related disclosures in the financial services sector (“SFDR”), Quantum Advisors Private Limited (“Quantum Advisors”) is required to publish entity and product-specific disclosures. The purpose of this section is to publish these disclosures.

 

The EU’s Sustainable Finance Disclosure Regulation (SFDR) is a new set of European Union rules that came into effect on March 10, 2021. The goal of SFDR is to make current profile of financial products more comparable and easy to understand for investors and other stakeholders. It includes several metrics for assessing ESG (Environmental, Social, Governance) impacts of the investment process for each type of financial product. 

 

As the SFDR suggests there will be much more emphasis on this disclosure, including the new rules that must identify any harmful impact made by the investee companies. Many of our existing and prospective clients will also be subject to these new requirements. We have made an effort to provide all the SFDR related documents in this section describing our current policies, procedures and how we disclose in accordance with these new rules and regulations.

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SFDR classification 

 

The main primary aim of the SFDR is to tackle greenwashing in the financial sector. It requires portfolio managers to classify their strategies / products based on their sustainability performance. The three classifications are Article 6, Article 8, and Article 9. 

 

Article 6: Those products / strategies that do not promote their environmental social or governance (ESG) characteristics.

 

Article 8: Article 8 products promote environmental or social characteristics, or a combination of those characteristics provided the companies in which investments are made follow good governance practices. 

 

Article 9: Referred to as products targeting sustainable investments requires products targeting bespoke sustainable investments and those that have sustainable investment as their objective 

 

We are pleased to confirm that the under the remit of SFDR, the Q India Responsible Returns Strategy managed by Quantum Advisors will be classified as Article 8 product. 

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Quantum Advisors has updated its website with key and allied documents to align with SFDR rules where applicable, along with updated Responsible Investment Policy as you find them in this section. Any further mandatory information can be provided upon request.

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Future Outlook

 

The SFDR is a part of new rules that form a part of the European Union’s sustainable finance action plan. It is evident that EU is currently playing a leader level role when it comes to developing its sustainability regulatory framework. While other jurisdictions are not far behind, we are also witnessing number of international, national initiatives under the way to encourage global consistency. We at Quantum Advisors assure our clients that we endeavour to stay abreast of these developments, educate our clients, and be committed to continuously monitor and develop innovative solutions that fits the needs of our clients.