Regulatory Alerts2024-07-17
SREP Market Overview: Feedback on Key Findings
The Dutch Authority for the Financial Markets (AFM) issued this document to provide market-wide feedback on the first Supervisory Review and Evaluation Process (SREP) questionnaire sent to 240 investment firms in 2023. The report highlights significant governance gaps, particularly regarding ICT risk management frameworks, the implementation of Product Approval and Review Processes (PARP), and the formal documentation of management oversight and board involvement. It warns that many firms lack adequate business continuity plans, risk action plans, and understanding of custody bank arrangements, urging immediate improvements to ensure compliant and orderly business operations.
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