Regulatory Alerts2024-09-27
AFM Recommendations on Outsourcing Monitoring in Asset Management
The Dutch Authority for the Financial Markets (AFM) issued recommendations in September 2024 following an investigation into outsourcing monitoring practices within the asset management sector. The regulator identified critical deficiencies in how firms qualify outsourcing arrangements, design control measures, and consistently monitor risks, particularly regarding intra-group services and ICT components. Firms are required to implement robust, risk-based approaches to ensure effective ongoing oversight and compliance with existing legal frameworks, including the upcoming Digital Operational Resilience Act (DORA).
Share