Some clarity, at last: After nearly a year of debate, key elements of SFDR 2.0 seem to be all but agreed: a three-category product labelling regime that is unlikely to apply before early 2029. There will be further negotiations over the precise details.

New benefits, new burdens: Alternative asset managers may be heartened by the EU Parliament's support for an opt-out for some professional-only AIFs and an exemption for legacy funds, but those positives may be offset by proposed new disclosure and reporting requirements that add cost and complexity.

Private markets not specifically addressed: By failing to adopt the Council's provisions for real and private assets, the EU Parliament is running the risk that active ownership strategies — a cornerstone of private markets investing — may be locked out of the new framework, making its text a step backwards in key respects.

Links:

proposal

position

heralded

argued