The campaign follows a report ‘Financial Planners as catalysts for social investment’ by Anthony Elliott, chief executive of the Fairbanking Foundation, Gavin Francis, founder of Worthstone, a company promoting the development of the social investment market, and Geoff Knott, a UK social investment practitioner.
This report suggests that Financial Planners, as ‘gatekeepers’ to the finances of wealthy individuals, should inform clients of new social investment products and conduct a review to find interested clients. Most likely clients would be socially-minded high net worth investors.
The writers urged the Financial Services Authority to provide clarification on suitability rules for social investments and for a tax incentive to create interest among Financial Planners and investors.
Product creators were told to keep social investment products simple and clearly educate both parties on the benefits of the new asset class.
Nick Cann, chief executive of the IFP, said: “This work to develop an effective market for social investments is welcomed by the IFP.
“Not only would a successful outcome provide greater investment choice for consumers but it would also create opportunities for broader gains by society as a whole.”
Mr Francis said: “Social investment offers a rare and important new opportunity to the Financial Planning community. The report acts as a vital roadmap for all those interested in optimising the unique ‘win-win’ situation that social investment can deliver for individuals and society.”
To view the report click here