IIF Authors

Status: Will be live at 06/15/2021 11:43

IIF Comments on SASB Asset Management & Custody Activities Standard 

The Institute of International Finance (IIF) submitted a response to the Sustainability Accounting Standards Board (SASB) invitation to comment on the topic of Proposed Changes to the SASB Asset Management & Custody Activities Standard on June 15.

The IIF supports the proposed removal of the Systemic Risk Management disclosure topic and the four associated accounting metrics until a holistic review supported by conclusive evidence can be conducted, to better align in a global consistent and coordinated manner the disclosure topic and any associated metrics. 

The IIF agrees with the view expressed by corporate issuers that the current narrative of the Systemic Risk Management disclosure topic is not aligned with the current regulatory narrative around systemic risk in the asset management industry and that the metrics specified in the standard do not provide the most decision-useful information to investors. The response letter also questions whether the activities of asset managers could pose risks of a sufficiently high probability and magnitude to give rise to significant and widespread negative social impacts and suggests that further review of this issue is warranted.