SFDR applies even to tailored, client-specific portfolios because they are still “financial products.” Firms must publish the required SFDR disclosures without revealing client-specific information, for example, by describing standardised portfolio solutions instead of individual mandates.
For portfolios, or other types of tailored financial products managed in accordance with mandates given by clients on a discretionary client-by-client basis, do the disclosure requirements in SFDR apply at the level of the portfolio only or can they apply at the level of standardised portfolio solutions?
The definition of ‘financial product’ in point 12 of Article 2 of Regulation (EU) 2019/2088 makes no distinction whether the products are tailored to specific preferences or requirements of end investors, or not. Transparency of the promotion of environmental or social characteristics and of sustainable investments on websites in accordance with Article 10 of Regulation (EU) 2019/2088 must ensure compliance with Union and national law governing data protection, and where relevant, also ensure confidentiality owed to clients. Where a financial market participant makes use of standardised product solutions, transparency of those solutions might be a way for complying with requirements on website disclosures laid down by Regulation (EU) 2019/2088.
European Commission
