diff --git a/baremetal/metal3data_manager.go b/baremetal/metal3data_manager.go
index 46d9c31c9..cf05002b0 100644
--- a/baremetal/metal3data_manager.go
+++ b/baremetal/metal3data_manager.go
@@ -537,20 +537,6 @@ func (m *DataManager) releaseAddressFromM3Pool(ctx context.Context, poolRef core
 
 	// Remove finalizer from Metal3IPClaim since we no longer need it
 	ipClaim.Finalizers = Filter(ipClaim.Finalizers, infrav1.DataFinalizer)
-	// Remove Metal3Data ownerRef
-	newOwnerRefs := []metav1.OwnerReference{}
-	for _, ownerRef := range ipClaim.OwnerReferences {
-		oGV, err := schema.ParseGroupVersion(ownerRef.APIVersion)
-		if err != nil {
-			return err
-		}
-		if ownerRef.Kind == "Metal3Data" && oGV.Group == infrav1.GroupVersion.Group {
-			continue
-		} else {
-			newOwnerRefs = append(newOwnerRefs, ownerRef)
-		}
-	}
-	ipClaim.OwnerReferences = newOwnerRefs
 	err = updateObject(ctx, m.client, ipClaim)
 	if err != nil {
 		return err
diff --git a/baremetal/metal3data_manager_test.go b/baremetal/metal3data_manager_test.go
index a674c8a47..062d5d83c 100644
--- a/baremetal/metal3data_manager_test.go
+++ b/baremetal/metal3data_manager_test.go
@@ -1329,8 +1329,8 @@ var _ = Describe("Metal3Data manager", func() {
 				if tc.injectDeleteErr {
 					// There was an error deleting the claim, so we expect it to still be there
 					Expect(err).To(BeNil())
-					// We expect the ownerRef to be gone
-					Expect(capm3IPClaim.OwnerReferences).To(BeEmpty())
+					// We expect the finalizer to be gone
+					Expect(capm3IPClaim.Finalizers).To(BeEmpty())
 				} else {
 					Expect(err).To(HaveOccurred())
 					Expect(apierrors.IsNotFound(err)).To(BeTrue())
@@ -1356,7 +1356,7 @@ var _ = Describe("Metal3Data manager", func() {
 			},
 			poolRef: corev1.TypedLocalObjectReference{Name: "abc"},
 		}),
-		Entry("Deletion error and ownerRef removal", testCaseReleaseAddressFromPool{
+		Entry("Deletion error and finalizer removal", testCaseReleaseAddressFromPool{
 			m3d: &infrav1.Metal3Data{
 				ObjectMeta: testObjectMeta(metal3DataName, namespaceName, ""),
 				TypeMeta: metav1.TypeMeta{
@@ -1367,12 +1367,9 @@ var _ = Describe("Metal3Data manager", func() {
 			poolRef: corev1.TypedLocalObjectReference{Name: testPoolName},
 			ipClaim: &ipamv1.IPClaim{
 				ObjectMeta: metav1.ObjectMeta{
-					Name:      metal3DataName + "-" + testPoolName,
-					Namespace: namespaceName,
-					OwnerReferences: []metav1.OwnerReference{{
-						Kind:       "Metal3Data",
-						APIVersion: infrav1.GroupVersion.Group + "/" + infrav1.GroupVersion.Version,
-					}},
+					Name:       metal3DataName + "-" + testPoolName,
+					Namespace:  namespaceName,
+					Finalizers: []string{infrav1.DataFinalizer},
 				},
 			},
 			injectDeleteErr: true,