EFAMA wants responsible investors to be, well, responsible

The European fund management industry has a large and growing number of firms offering investment products that promise "ethical" or otherwise "responsible" investments. Yet there's no standard to which these products have to adhere, let alone a code concerning how they're marketed to the investing public. EFAMA, the European Fund and Asset Management Association, thinks that if an investment manager provides such products, it should commit to a certain degree of transparency so end-investors can evaluate and compare the product. "Increased transparency of client reporting, communication of investment approaches and selection methods would help investors distinguish between different … offerings and allow them to make more informed decisions," it said. EFAMA would welcome universal standards and hopes the European Union would back this form of self-regulatory move by the industry.

Source document: The EFAMA responsible investment report is a 27-page pdf file.