In line with the European Union Action Plan for Sustainable Financing, the Cyprus Securities and Exchange Commission (“CCP”) confirmed that ensuring the compliance of supervisory bodies with the rules related to sustainable financing is a priority.
In view of the implementation of Regulation (EU) 2019/2088 on financial services sustainability disclosures (“SFDR”) on 10 March 2021, which is expected to affect a large part of the financial sector in Cyprus, the ECC has created a special section on the Internet. of the place (accessible here), which contains information on sustainable financing and related regulatory rules.
The term “sustainable financing” includes the process of making investment decisions and providing investment advice, taking into account issues of the environment, society and corporate governance. Environmental issues include climate change and mitigation methods, biodiversity protection, environmental pollution prevention and the circular economy. Social issues include equality, cohesion, labor relations, investment in human resources and human rights.
The President of the ECC, Mrs. Dimitra Kalogirou, stated: “At the global level, there is an understanding of the growing importance of sustainable investments. Sustainable investment and compliance with relevant regulatory requirements are a priority for the ECC, in the context of investor protection and the consolidation of Cyprus as a regional hub in the field of sustainable development. We have made it clear to the supervised entities that they must ensure their full compliance with the SFDR Regulation and in general their obligations under the Sustainable Investment Regulatory Framework and we intend to take supervisory measures where necessary to ensure the protection of investors “.
