Legal

SFDR Compliance Checker

Assess fund prospectus adherence to Sustainable Finance Disclosure Regulation requirements

Overview Capabilites Agent Workflow Example prompt

Overview

The SFDR Compliance Checker helps asset managers and legal teams ensure fund prospectuses meet the stringent requirements of the EU's Sustainable Finance Disclosure Regulation (SFDR). With complex disclosure obligations around sustainability risks, principal adverse impacts, and ESG integration, compliance teams face significant manual review burdens. This agent analyzes fund documentation against SFDR Article 6, 8, and 9 requirements, identifies missing disclosures, flags inconsistent language, and recommends specific additions to achieve compliance. Built on elvex's secure, enterprise-grade platform, it accelerates compliance reviews while reducing regulatory risk.

Capabilities

Assess prospectus compliance with SFDR Article 6, 8, and 9 requirements
Identify missing mandatory disclosures and sustainability risk statements
Flag inconsistencies between fund classification and disclosure content
Recommend specific language additions to meet regulatory standards
Generate compliance gap reports with remediation priorities

Agent Workflow

Input: User uploads fund prospectus and specifies SFDR article classification (6, 8, or 9)
Requirement Mapping: Agent identifies applicable SFDR disclosure requirements based on fund classification
Document Analysis: Scans prospectus for required disclosures, sustainability statements, and PAI considerations
Gap Identification: Flags missing or insufficient disclosures against regulatory requirements
Recommendation Generation: Provides specific language suggestions and disclosure additions
Output: Delivers compliance assessment report with gap analysis and remediation roadmap

Example prompt

"Review the attached prospectus for our European Sustainable Equity Fund, which we're classifying as an SFDR Article 8 fund promoting environmental and social characteristics. Assess whether the document contains all mandatory disclosures including: sustainability risk integration statement, principal adverse impact considerations, description of environmental/social characteristics promoted, investment strategy alignment with stated characteristics, and proportion of sustainable investments. Identify any missing or insufficient disclosures, flag language that may be inconsistent with Article 8 classification, and provide specific text recommendations to achieve full compliance. Format the output as a compliance gap report with high/medium/low priority remediation items."