The Charity Commission, the registrar and regulator of charities in England and Wales, is to consult on revised guidance on responsible investments.
‘Responsible investments’ refers to financial investments that align with a charity’s mission and purpose.
The announcement follows a listening exercise undertaken by the regulator last year, which found, among other things, that the way responsible investment is outlined in its current guidance is not giving some trustees sufficient confidence that they can consider, or that the Commission supports, this approach to investment.
The Commission plans to publish draft guidance in Spring of this year for public consultation, supported by a refreshed interpretation of the law in this area. The final updated responsible investments guidance is expected this Summer.
Paul Latham, Director of Communications and Policy at the Charity Commission, said:
“It is not for the Commission to instruct charities on how to invest their assets. But it is part of our role to ensure our guidance keeps pace with wider changes in society, so that charities feel confident to invest and use their resources effectively in line with their purpose, and be accountable to the public and donors.
“We are grateful to all those who took part in last year’s listening exercise, and we hope that charities, investment managers and others will take the opportunity to offer feedback when we publish draft guidance in the Spring.”
The Commission’s guidance on responsible investments is part of its wider guidance on Charities and Investment Matters (CC14).