Key Takeaways
- • UK Sustainable Investment and Finance Association (UKSIF) has called for investment consultants to be regulated by the Financial Conduct Authority (FCA) to address inconsistent advice given to pension trustees on fiduciary duty and sustainability.
- • UKSIF argues that trustees currently receive varying guidance on fiduciary duty, and that FCA regulation of consultants would help ensure they receive reliable advice.
- • UKSIF has separately urged the UK government to publish industry guidance clarifying fiduciary duties for pension schemes.
- • The primary source is a gated Responsible Investor article, so the specific figures and further detail of UKSIF's submission are not available from the text reviewed.
Summary
Responsible Investor reports that the UK Sustainable Investment and Finance Association (UKSIF) has called for investment consultants to be regulated by the Financial Conduct Authority (FCA). According to the industry body's position as summarised by Responsible Investor, consultants should be FCA regulated so that trustees receive the best advice on fiduciary duty and sustainability. The call responds to concerns that advice given to trustees on these issues is inconsistent.
UKSIF's broader position, as reflected in related material from its own domain, is that environmental and social impacts through investments are consistent with fiduciary duty, and that further clarification of fiduciary duties would help. The association has also argued that it is vital the government publish industry guidance on fiduciary duties, providing pension schemes with support and clarity. UKSIF has noted in its written evidence that investor behaviour and the interpretation of fiduciary duties have evolved as an increasing number of pension schemes integrate sustainability considerations.
Related publisher material also references a government commitment to develop new guidance to clarify fiduciary duty for UK trustees, which has been a longstanding issue for the sector. Other related material cited in the publisher's context concerns US fiduciary standards under the Investment Advisers Act of 1940, which are not part of the UK proposal and should not be read as current UK policy.
The full article is behind a registration wall, so further specifics such as named officials, timelines or detailed regulatory mechanics are not available in the text reviewed.
UKSIF's broader position, as reflected in related material from its own domain, is that environmental and social impacts through investments are consistent with fiduciary duty, and that further clarification of fiduciary duties would help. The association has also argued that it is vital the government publish industry guidance on fiduciary duties, providing pension schemes with support and clarity. UKSIF has noted in its written evidence that investor behaviour and the interpretation of fiduciary duties have evolved as an increasing number of pension schemes integrate sustainability considerations.
Related publisher material also references a government commitment to develop new guidance to clarify fiduciary duty for UK trustees, which has been a longstanding issue for the sector. Other related material cited in the publisher's context concerns US fiduciary standards under the Investment Advisers Act of 1940, which are not part of the UK proposal and should not be read as current UK policy.
The full article is behind a registration wall, so further specifics such as named officials, timelines or detailed regulatory mechanics are not available in the text reviewed.
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