An Updated CIFSC List Will Increase Transparency for Ethical Investing

The final framework for identifying investment funds that disclose using responsible investing methods has been announced by the Canadian Investment Funds Standards Committee (CIFSC).

Investors can identify funds that adopt a RI approach with the aid of the framework produced by the Canadian Investment Funds Standards Committee (CIFSC) with input from industry stakeholders.

These include funds with a responsible investing mandate stated in their prospectus, those with a separate document consistent with the Global ESG Disclosure Standards for Investment Products published by the CFA Institute, as well as other widely recognised standards.

CIFSC Chair Ian Tam said: "This framework is a huge step in helping Canadian investors find products that suit their non-financial investment preferences. Moreover, having an identification framework recognised across the Canadian landscape will allow for easier comparability."

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Instead of adding complexity for investors and their advisers, the approach is meant to complement the CSA's recent recommendations on ESG fund disclosures and the CFA Institute's Global ESG Disclosure Standards for Investment Products.

In the upcoming weeks, a fresh list of funds that adhere to the framework's requirements will be made available to the public and linked to significant Canadian research databases.

Source: Wealth Professional

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