Regulatory Alerts2024-10-28
AFM Exploration of ESG Data Risk Management by Asset Managers
The Dutch Authority for the Financial Markets (AFM) issued a supervisory report in October 2024 detailing findings from an exploration of how asset managers manage risks associated with Environmental, Social, and Governance (ESG) data. The report identifies four key observations regarding data governance structures, reliance on external providers, the necessity of a unified data risk definition, and the implementation of proactive and reactive quality controls. It further highlights persistent challenges such as methodological transparency, data uniformity, timeliness, and entity identification, urging asset managers to establish robust internal controls to ensure data reliability and integrity.
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