Above (per Guidance) it is noted that an FI needs to include funds managed under discretionary mandates.
However, in the Guidance, the SBTi also “recommends but does not require that banks’ asset management divisions follow Table 5.2 to set targets on these funds. If banks decide to exclude their asset management divisions from their parent company–level targets, they should disclose this exclusion in the target wording for transparency and comparability.”
We have a client asset management division that’s a separate subsidiary to our bank.
Is our interpretation below correct?
- Setting targets for managed off-balance-sheet client assets (discretionary mandates) through our subsidiary is OPTIONAL as long as we disclose this exclusion.
- Setting targets on funds we manage and own (on balance sheet) is REQUIRED, BUT ONLY where approaches exist - e.g. listed equity and corporate bonds? (For the time being, Derivatives, Sovereign and Govt bonds, Sub-sovereign municipal bonds, Agency bonds, Securitized fixed income (ABS, MBS) are not required.)