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PFS social impact investing guide launched to meet ‘growing interest’

9 May 2018

The Personal Finance Society, supported by the government’s independent advisory group on social impact investing and the Department for Digital, Media, Culture and Sport, has launched a new guide for advisers on social impact investing.  

The guide will include a link to a ‘conversational tool’ on three levels, tailored to different adviser capabilities. Each features a series of simple exercises designed to help clients clearly articulate their preferences on investments that create impact.

PFS chief executive Keith Richards said the guide followed “growing interest” in schemes that have some form of ‘value-related’ component, with more than half of individual investors showing an interest in social impact investments.

He commented: “We are aiming to provide guidance on, and give an overview of, this growing market – including recent government and regulatory activity – to help those investors with an interest in social impact investing to align their savings, pensions and investments with their personal values.”

Richards added: “We have seen recent growth in the market for social impact investments that deliver a social impact as well as a risk-aligned rate of return Meanwhile, the FCA have confirmed that no specific regulatory barriers exist to prevent retail investors or financial advisers increasing their involvement in social impact investing. We are proud to be part of an industry-led group that is determined to tackle the lack of clarity and potential misalignment of expectations among asset owners, managers, advisers and investors – of which this is the first step.”

The PFS said its ultimate wish is to empower advisers with the social investing skills and market knowledge needed for it to turn into a viable additional to traditional investments.

Richards’ comments were echoed by Tracey Crouch MP, the minister for civil society, who said: “The UK is a pioneer for social impact investment and this guide supports our commitment to make it easier for people to invest in this way. I urge every financial adviser to take a look at the guidelines and help their clients invest in a way that can help make a positive impact on issues they care about.”

The guide can be accessed investmentat: http://www.thepfs.org/knowledge/good-practice/hub

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