The Central Bank of Ireland (CBI) will fast-track the process for ESG fund name changes to comply with new rules under the Sustainable Finance Disclosure Regulation (SFDR). The streamlined process will help UCITS and Alternative Investment Funds (AIFs) meet the upcoming deadlines. 

New ESG funds must adhere to the guidelines starting from November 21, while existing funds have until May 21, 2025, to make necessary changes. Under the SFDR rules, funds using ESG or sustainability in their name must allocate at least 80% of their investments to environmental or social characteristics. 

ETFs are expected to be disproportionately impacted by these rules. While only 21% of the 1,600 affected funds are ETFs or index funds, they account for nearly 45% of the $40 billion in assets subject to exclusion under the new guidelines. 

The CBI noted that the fast-track process only applies to name changes, and any additional document changes due to SFDR adjustments will not be included. 

The European Securities and Markets Authority (ESMA) set the November deadline to prevent greenwashing and ensure transparency in sustainability reporting. These guidelines aim to protect investors from misleading ESG claims and encourage more accurate sustainability disclosures. 

Sources: 

https://www.etfstream.com/articles/irish-regulator-to-fast-track-esg-fund-name-changes 

https://www.simmons-simmons.com/en/publications/cl8vhszwu5ncq0b7809r4fyf8/sfdr-level-2-irish-central-bank-sets-out-fast-track-filing-process