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The Risk Management Association (RMA) provided an association update in one of its afternoon panels on day one of the RMA conference, discussing the next steps for a number of its committees.
In 2021, the RMA formed an environmental, social and governance (ESG) Committee which encompasses representatives from the agent lender, broker-dealer and beneficial owner communities.
The Committee objective consisted of developing strategies to promote the use of ESG within securities lending. Education and collaboration with regional associations have been key themes for the Committee, which led to the formation of the Global Alliance of Securities Lending Associations (GASLA).
GASLA is a group consisting of five securities lending organisations, those are the International Securities Lending Association (ISLA), RMA, the Pan Asia Securities Lending Association (PASLA), the South African Securities Lending Association (SASLA), and the Canadian Securities Lending Association (CASLA).
The group is now working to update its global framework for ESG and securities lending by revising its best practice recommendations around proxy voting, collateral and transparency.
The association will update this by incorporating some of the best practices and information from its published papers discussing proxy voting and myths and misconceptions in securities lending.
In terms of the Operations and Technology Committee, this group is looking at where the equal balance is from operations, technology and from fintechs. The Committee will establish monthly conversations directly with each of the operational organisations, whether that be a beneficial owner or lender. In addition, vendors will have a chance to put forth their concerns and how the industry is designing for the future.
A panellist highlighted the importance of preventing anything “slipping through the cracks” and that organisations remain on the same page to help provide a holistic approach to all of the changes that are affecting the way that organisations operate on a daily basis.
Collaboration is a key focus for the RMA and will continue to be an important factor in the next few years as the industry adapts to the regulatory, technology and environmental landscape.
