On April 23, the AFM published its consultation guideline PARP 'scenario analyses from a client perspective'. We endorse the importance of scenario analyses by investment firms or managers of investment institutions that also offer investment services. Nevertheless, we made it clear in our response of June 7 that drafting a guideline is not the right instrument to give substance to a European standard for asset managers.
Scope
We believe that not all investment institutions are covered by the MiFID PARP rules as confirmed by ESMA. The AFM should more tightly delineate the scope for investment managers in this policy rule. After all, in the draft Guidance, the AFM makes no or insufficient distinction between obligations applicable to financial firms offering insurance or credit on the one hand and financial instruments or investment products on the other.
'KNVB' criteria not applicable
The draft Guidance refers to the KNVB criteria developed by the AFM. For investment firms or fund managers with a MiFID top-up, these criteria do not apply, precisely because ESMA has fleshed out product governance obligations for this type of financial firm through its Guidelines. This should be better reflected in the final policy rule.
Goldplating
To the extent that additional guidelines are needed for asset managers on PARP scenario analyses from a client perspective, we believe this should be done at the European level and not at the national level.
