- Clarity AI starts a solution to simplify regulatory and characteristic complexity for sustainable funds in Europe.
- The platform integrates several ESG frameworks into a single interface and shortens the time that is spent on conformity.
- Supports fund manager in British SDR, German FNG and the upcoming French Sri and Belgian labels.
The regulations for sustainable investment funds develop rapidly and increase with the increasing examination of greenwashing and new labeling standards. Fund managers must meet the regulatory requirements such as the apparent requirements for sustainability (SDR) of the British FCA and the labels such as France's Sri and Germany's FNG.
The solution:
The latest platform from Clarity AI is flowing the ESG conformity through consolidation of regulatory data and screening tools into a user-friendly dashboard.
“The aim is to reduce the period, issue the fund manager to determine potential investments that do not exist for the standards and understand the cause of non -compliance to decide on the best procedure.“ said Henry Waind, product manager at Clarity AI.
Why it is important:
New guidelines of the European Securities and Markets Authority (ESMA) require ESG funds to maintain at least 80% sustainable investments. Fund managers need customizable tools to efficiently meet these developing requirements.
Related articles: Clarity AI: Only 4% of the “sustainable” investment funds would automatically meet the requirements of the US, Great Britain and EU regulation rules for investment funds
“Sustainability regulations and names proliferate and make it increasingly a challenge for fund managers to keep pace.“ Tom Willman said, regulatory lead at Clarity AI. “A considerable amount of resources is associated in regulatory obligations. These could be better used to develop sustainable solutions that support the sustainability goals of the end investors, and the technology is the key to make this process more efficient.“
Look ahead:
The Clarity AI tool currently supports UK SDR and German FNG labels and will soon include additional framework conditions such as the French Sri and Belgian in the direction of sustainability labels. The platform also shows exclusions of Paris-oriented benchmark (PAB) and Climate Transition Benchmark (CTB) according to the name rules of ESMA.
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