MEDIA RELEASE 28 AUGUST 2001

Ethical Investment Association of Australia (EIA), Media Release

FSRB ENFORCES ETHICAL TRANSPARENCY

CANBERRA Tuesday, 28 August, 2001. 5:30 p.m
An amendment to the Financial Services Reform Bill backed in the Senate by Labor, the Democrats and the Greens and passed in the Lower House less than an hour ago could alter the face of financial services over the next five years The Financial Services Reform Bill (FSRB) will require superannuation and other investment fund managers to disclose:
"the extent, if any, to which labour standards, environmental, social or ethical considerations are taken into account in the selection, retention or realisation of the investment."

"This is legislation that responds to the increasing consumer concern regarding where their investment dollar goes, and if it is being used in ways that are productive or destructive" said Janice Carpenter, Joint President of the Ethical Investment Association of Australia (EIA).

The legislation is a based on similar disclosure legislation in the UK, and coincides with new data that suggests Australian investments screened for social and environmental factors grew by more than 80% during the past year.

"While some funds may initially see this as another compliance hassle, in fact it is an opportunity to build trust and show differentiated investment procedure" says Ms Carpenter.

Implementing this amendment will require close industry self-examination, especially in light of the continued strong financial performance from ethical funds both in Australia and overseas.

The Australian Securities and Investments Commission (ASIC) will draft the regulations and oversee implementation. "The EIA plans to consult with ASIC, industry bodies and individual super and financial institutions to ensure that the spirit of the legislation is passed into the regulations." says Ms Carpenter

Fortuitously timed, the Ethical Investment Association of Australia is holding its second Annual Conference next week, September 3rd and 4th in Melbourne.

Labor Senator Stephen Conroy, Democrat Senator Lyn Allison and Coalition MP Bruce Billson will present at the conference with FSRB implications expected to be a hot topic of discussion.

"Investors, society and the environment are the big winners from this progressive shift for Australian financial services" says Ms Carpenter

The EIA has conducted much of the lobbying for the amendment in recent months and would like to congratulate the ACF for its initiation of this provision. The EIA also thanks Labor, the Greens and the Democrats for the amendment's passage in the Senate, and the Government for its support of the amendment in the Lower House

For further information contact Janice Carpenter, Joint President of the Ethical Investment Association of Australia on (02) 9214 8411

NOTE, EIA IS HOLDING THEIR ANNUAL SRI CONFERENCE SEPT 3 & 4. details at http://www.eia.org.au/

 

MEDIA RELEASE -

Resnik Consulting Group, Media Release

FINANCE BILL MANDATES ETHICAL DISCLOSURE
Conference to discuss implications

Wednesday, 29 August 2001
CANBERRA
Last night the Lower House of the Australian Parliament passed an amendment to the Financial Services Reform Bill (FSRB) requiring superannuation funds and funds managers to disclose their policy on ethical investment.

Similar legislation in the United Kingdom (UK) has given ethical funds in the UK a significant market advantage.

The amendment will require all financial services product disclosure statements to outline "the extent, if any, to which labour standards, environmental, social or ethical considerations are taken into account in the selection, retention or realisation of the investment."

The legislation creates an imperative for the investment community to get up to speed on socially responsible investment.

"One thing for certain is that funds, especially superanuation funds, will have to make a decision about what their disclosure statement will contain prior to October 2001 when the bill is due to come into force," said Paul Resnik of the Paul Resnik Consulting Group

The mantra of the finance industry has to date been 'financial considerations only" . "Getting to grips with the social and environmental impact of their investment decisions will require a steep learning curve, but one that will benefit society in the long run" says Mr Resnik

Fortuitously timed, the Ethical Investment Association of Australia is holding its second Annual Conference next week, September 3rd and 4th in Melbourne.

Labor Senator Stephen Conroy, Democrat Senator Lyn Allison and Coalition MP Bruce Billson will present at the conference with FSRB implications expected to be a hot discussion topic.

The agenda also covers latest developments in ethical investment internationally and the effect of similar disclosure legislation in the UK. - essential information for superannuation and other financial institutions that will now need to comply with the FSRB legislation.

For further information contact Simeon Michaels of The Paul Resnik Consulting Group on 02 9290 9304.