Regulatory Alerts2022-11-02
AFM Feedback on Outsourcing Reporting for Investment Firms and Managers
The Dutch Authority for the Financial Markets (AFM) issued this letter to share findings from an outsourcing report submitted by investment firms and managers, emphasizing the critical need to manage outsourcing risks. The regulator highlights that while some improvements have been made, significant gaps remain in outsourcing policies, due diligence, and quality monitoring, particularly among investment firms. The AFM intends to use these insights for proactive, risk-based supervision and will conduct further individual investigations into firms with inadequate risk controls or extreme outsourcing levels.
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