The global investment and trading landscape has led to a transformation in the way financial services firms perform product governance. Whether related to ESG-related disclosure, such as the EU’s SFRD or CSRD rules, the FCA’s new Consumer Duty principle, or wealth managers wanting to perform fund screening for ethical reasons – firms need to start investing in the digitisation of product governance to meet new business and compliance challenges.
In order for firms to comply, data needs to be complete, consistent and comparable. Decisions need to be informed, with due diligence focusing on risk management, impact assessment, and social or environmental effects. Robust processes need to be in place to test outcomes and implement effective management information.