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Financial Planners as Catalysts for Social Investment

This report shows how financial planners can help build the social investment market in the UK.

This report shows how financial planners can help build the social investment market in the UK

Key Findings:

  • Financial planners influence the deployment of a significant proportion of the UK’s wealthy retail investors’ funds under management. 
  • The flow of capital to social investment products is slower than it has the potential to be, and there are numerous reasons for this.
  • There is an opportunity to support financial planners in offering social investment products to their clients, and to support the development of products, communications, regulation and tax in order for this new asset class to reach its potential.

This paper rasies the profile of social investment by prompting a thought-provoking response from those within the financial planning community. It alerts financial planners to a potential opportunity to lead the way, by seeking to meet the aspirations of investors who wish to use part of their wealth to bring about a positive impact upon society.

 

In summary, this report provides a platform to inform the debate that is needed between all parties – investor, product provider, government and regulator – if social investment is to reach the recognised asset class status that it requires for it to be accepted with confidence by those upon whom its future viability depends.

 

This is the first time in the UK that a research project has focused wholly on the relationship between the social investment sector and the investment adviser marketplace. The intention is that this evidence-based work provides the opportunity for stakeholders to deliver a substantiated message of value and coherent strategy to three main groups:

 

1. Those providing regulated investment advice to clients, including the profession's FSA accredited bodies.

2. The social investment intermediaries designing product solutions.

3. The influencing and decision-making bodies such as regulators and government.

 

Authors

Antony Elliott, Gavin Francis and Geoff Knott