SFDR Disclosures – No Consideration of Sustainability Adverse Impacts
Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability-related disclosures in the financial services sector (the “Regulation”), also referred to as the ‘Sustainable Finance Disclosure Regulation’ or ‘SFDR’, seeks to achieve more transparency regarding how ‘financial market participants’ and ‘financial advisers’ integrate sustainability risks into their investment decisions and investment advice. Consequently, this Regulation requires financial market participants and financial advisers to publish written policies on the integration of sustainability risks and to ensure the transparency of such integration. Rizzo Farrugia falls within the scope of the Regulation and is disclosing here-below the required information in terms its regulatory requirements.
Rizzo Farrugia‘s aim is to consistently take investment decisions or provide investment advice in a highly professional manner and in the best interest of its clients, based on its market knowledge, experience and access to research, and on the basis of a medium or long term investment horizon.
While, at this point in time, in view of its relatively small size and the potentially cumbersome application of the Regulation, Rizzo Farrugia does not formally and explicitly integrate sustainability risks and consider the adverse impacts (Principal Adverse Impact ‘PIA’) of its investment decisions on sustainability factors as indicated by article 4 of the Regulation (EU) 2019/2088, it shall nonetheless continue to consider, as part of its overall considerations prior to any investment decisions or advice, any significant environmental, social or governance implications connected to a proposed investment that are known to it or that it may become aware of and that may be considered to impact the long-term financial performance of that proposed investment. Rizzo Farrugia also aims to steer away from any investments which may be significantly in conflict with what the Company would consider to be socially and/or environmentally responsible investment decisions or advice. Rizzo Farrugia will continue monitoring market conditions and regulatory developments and may consider the full application of the provisions of the Regulation at a later stage.
Rizzo Farrugia offers transparency and consistency in the remuneration strategy. In fact all staff members are rewarded by means of a fixed remuneration, thereby eliminating any undue sustainability risk.