The European Union has delayed the introduction of the second phase of SFDR rules for asset managers by six months.

Level 2 comes after the introduction of Level 1 requirements in March 2021. Introduction of the Level 2 “RTS” requirements has now been delayed until July 2022 and will mean firms are subject to additional disclosure requirements regarding the alignment of their investments with the Taxonomy Regulation.

John Berrigan, deputy director-general for financial stability, financial services and capital markets union at the European Commission, said the delay would ensure a smooth implementation of the regulation. “We therefore plan to bundle all 13 of the regulatory technical standards in a single delegated act and defer the dates of application of 1 January 2022 by six months to 1 July 2022,” he said.