From, Ethical Investment Association of Australia (EIA)

Oz financial Act now requires disclosure of ethical aspects

Financial Services Reform Bill 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

FSRB ENFORCES ETHICAL TRANSPARENCY