Managing divergence

Deliver sustainable finance: Review the firm's overall strategy, embed sustainability factors into the investment process, ensure names and disclosures correctly reflect product offerings, and prepare to meet expanding disclosure requirements.

Mitigate systemic risk: Review investment risk management arrangements, particularly relating to the liquidity management of open-ended funds, and stress testing. Control the use of leverage and adopt asset valuation best practices, especially for private, real and crypto-assets.

Double-down on resilience: Review the risk management framework and controls in the light of challenges and opportunities. Identify and manage operational and information security-related risks, including third-party oversight arrangements. Maintain adequate financial resources.

Embrace innovation: Explore potential uses of tokenisation and artificial intelligence to drive efficiencies and new business, within the guardrails of the evolving regulatory framework.

Protect investors: Align the firm's strategy, culture, and purpose with clients' best interests.

Project good governance: Evaluate the success of the firm's culture, leadership, and governance model, and make changes where needed. Encourage a “speak-up” culture, ensure the composition of boards provides sufficient knowledge, expertise, experience and challenge, adopt a flexible business model, and deter financial crime.

Seize opportunities: Factor opening markets and new and evolving fund vehicles into the business and product strategy.