Guillaume Heraud, head of marketing and ESG solutions, SGSS, explains that asset managers should revisit contractual arrangements.
As part of its coverage of Sibos 2022 in Amsterdam, Funds Europe has reached out to financial experts on key topics at the conference. Read more analysis here.
Can you highlight a piece of regulation at the European level that is most impactful for asset managers in terms of their technology governance or development?
“It is all about green finance. Asset managers deal simultaneously with any of these regulations, directly or indirectly linked to ‘’ESG’’ topics: SFDR, framework regulation (the so-called ‘’green taxonomy’’) and climate law.
“The time to market is critical. Investor’s sensibility for climate/ESG matters compels asset managers to set a ‘’climate /ESG investment’’ strategy. This combines both investment choices in terms of ESG factors and the efficient production of SFDR reporting.
“Once the ESG data is captured and ESG methodologies are validated with KPIs/PAIs, the main challenge is to have a good technology without duplicating IT development for each piece of regulation.
“Asset managers also assess CSRD, EET template or TCFD Reporting to anticipate ‘’ESG ‘’disclosures that are not (yet) legally binding.
“Financial products enter the scope of MIFID II product governance guidelines.
“Managers should revisit their contractual arrangements with delegated managers, advisers and distributors to ensure compliance with ESG-related obligations incurring changes on MiFID, UCITS and AIFM directives.”
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