Regulatory Alerts2024-12-17
Derive Valuable Insights from the RPO: Ask Effective Questions and Ensure Proper Documentation
The Dutch Authority for the Financial Markets (AFM) issued this analysis report following its 2024 assessment of Risk Preference Studies (RPOs) conducted by pension administrators. The AFM observes significant progress in the 'measurable', 'appropriate', and 'feasible' FRAME criteria but identifies critical flaws in risk-return trade-off questions and documentation completeness. The regulator mandates that administrators avoid misleading questions, ensure transparent methodology combination, and rigorously document assumptions and reflections to guarantee the reliability and comparability of RPO results.
Share