FR – AMF’s report on AMC compliance with non-financial contractual commitments

01/09/2023

On June 12, 2023, the Autorité des marchés financiers (AMF) published a report summarizing SPOT inspection on portfolio Asset Management Companies (AMC)' compliance with their non-financial contractual commitments.

The AMF assessed the level of compliance with the AMCs’ regulatory obligations and identified good and poor practices in the following fields:

  • environmental, social and governance (ESG) / socially responsible investment (SRI) management organization and resources

  • ESG management and rating methodology;

  • the process for selecting and monitoring external suppliers of extra-financial data;

  • the process for constructing and reviewing the initial investment universe and the investment process for ESG / SRI funds;

  • the mapping of existing commitments, particularly in terms of some issuers exclusion;

  • monitoring compliance with commitments;

  • information provided to investors on contractual extra-financial commitments;

  • the role of custodians in monitoring funds' extra-financial commitments.

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