MFA and AIMA Respond to European Commission Consultation on Asset Managers’ Duties Regarding Sustainability
January 22, 2018
Today, MFA and AIMA submitted a joint response to the European Commission’s consultation on asset managers duties regarding sustainability, which seeks feedback on requiring the inclusion of Environmental, Social, and Governance (ESG) factors into asset managers fiduciary duty.
Among other points, the associations note that the fiduciary duties should remain apolitical high level principles, to enable asset managers to be fully with their clients’ objectives and interests. To achieve the Commission’s objective of promoting ESG factors into investing behavior, we encouraged the Commission to consider creating incentives for investors on the demand side of the asset management process rather than imposing requirements (especially any proscriptive requirements regarding factors which must be applied as part of an asset manager’s fiduciary obligations) to asset managers on the supply side of the asset management process.