Advisers in the dark on ethical investment

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A global survey of 400 IFAs showed that more than a third (38 per cent) had never discussed ethical investment with their clients.

Almost a third (31 per cent) of advisers admitted they don’t know enough about responsible investing, while 66 per cent said they lacked access to information on it.

The survey was conducted by responsible investment manager Alquity, whose founder Paul Robinson said: “IFAs still don’t understand responsible investment and there is a critical disconnect between the demands of retail investors who are looking at ethical investments and the traditional IFAs.”

The survey was formed from approximately 250 individuals in the UK with the remainder from around the world.

Responses showed that 74 per cent of the UK-based advisers said discussion on ethical investment was driven mostly or entirely by the client. However, only 43 per cent of advisers based abroad held the same view.

Suresh Mistry, group sales director for Alquity, said: “The figures imply that the UK advisers don’t care about ethical investment and that the overseas advisers are far more likely to suggest SRI investment as an option to clients. The UK advisers appear to be about 20 years behind the times.”

Adviser view

Claire Walsh, chartered financial planner at East Sussex-based IFA Aspect 8, said “When first contacting potential clients I always write to them asking if they are interested in ethical investment. This is always better than asking them face-to-face, because if you are asked if you are interested in ethical investing you are likely to say yes. Around 10 per cent of our clients have ethically invested portfolios”.