The IOSCO recommendations go a long way in assisting global regulatory efforts to improve product-level disclosures and in recognizing the need in all markets for more and continuing investor education on ESG and sustainability investing.
CFA Institute, the global
association of investment professionals, welcomes the recommendations
put forth by IOSCO, the International Organisation of Securities
Commissions, in its recently published Recommendations on Sustainability-Related Practices, Policies, Procedures and Disclosure in Asset Management, Final Report.
The recently launched CFA Institute Global ESG Disclosure Standards for Investment Products and the Certificate in ESG Investing
offer financial regulators market-neutral tools to aid in implementing
the IOSCO recommendations relating to product disclosures and investor
education.
Paul Andrews, Managing Director for Research, Advocacy, and Standards at CFA Institute comments:
“The IOSCO recommendations go a
long way in assisting global regulatory efforts to improve
product-level disclosures and in recognizing the need in all markets for
more and continuing investor education on ESG and sustainability
investing. Regulatory bodies that wish to progress the IOSCO
recommendations will find that the CFA Institute Global ESG Disclosure
Standards for Investment Products align well with the IOSCO
recommendations, providing a ready-made template for best-practice
disclosure standards in their market.”
The CFA Institute Global ESG
Disclosure Standards for Investment Products have a number of features
that align with the IOSCO recommendations, which make them an ideal tool
for regulators. They:
- Protect investors by establishing ethical standards for
the fair representation and full disclosure of how an investment product
considers ESG issues in its objectives, investment process, and
stewardship activities;
- Are policy-neutral and do not attempt to influence
end-investors’ investment product selection decisions or capital flows
in aggregate;
- Accommodate the full range of investment vehicles, asset classes, and ESG approaches offered in markets around the world;
- Contribute to capital market integrity and efficiency by
establishing disclosure requirements that are relevant and useful to
investors and that allow investment products to fairly compete on equal
terms; and,
- Have been developed through a transparent, collaborative
process guided by volunteer investment professionals and informed by two
rounds of public consultation.
Further,
IOSCO calls for more investor education on ESG investing; more than
11,500 global candidates have already registered for the CFA Institute
Certificate in ESG Investing. The certificate provides the essential ESG
investing language, practical application, and technical knowledge that
industry professionals increasingly need. It is particularly suitable
for professionals working in portfolio management, performance and risk,
sales and distribution, wealth management, product development,
financial advice, and consulting.
CFA Institute will continue to offer the Certificate in ESG Investing in markets around the world and looks
forward to working with regulators and industry participants globally
to advance ESG education and investment product disclosures.
CFA
© CFA Institute
Key
Hover over the blue highlighted
text to view the acronym meaning
Hover
over these icons for more information
Comments:
No Comments for this Article