Asset Management Association Switzerland (AMAS) has launched a new self-regulation framework to guide asset managers on how to design and mange collective sustainable finance solutions.
The voluntary framework includes the organisational needs for financial institutions. Requirements for product design and disclosures to investors are also included in the framework.
With the framework, AMAS aims to improve the standards of Swiss financial institutions in sustainable finance in Switzerland and beyond.
Developed as part of a broad-based approach, the framework is scheduled to take effect on 30 September 2023.
AMAS chairman Iwan Deplazes said: “Self-regulation enhances the quality of collectively managed sustainable assets through binding standards, while improving transparency through comprehensive documentation and reporting obligations.”
The newly launched framework requires asset management companies to become aware of sustainable issues at management, supervisory and operating levels.
The firms should also make infrastructure and resources available to comply with the investment strategy’s sustainability needs.
Asset mangers are required to record sustainability policies and approaches. They should also take note of metrics, datapoints and analysis tools used in the investment sector.
In addition, the framework outlines that inclusion or exclusion of environmental, social, and governance (ESG) standards no longer determine the sustainability parameters of a financial product.
Comparable indicators should be used by the firms to ensure transparency of sustainability goals while reporting to investors, added the framework.
AMAS CEO Adrian Schatzmann said: “With this self-regulation framework, the Swiss asset management industry is making a crucial contribution to sustainability, in accordance with the guidelines of the Swiss Federal Council ’s financial market strategy and the common goal of positioning Switzerland as a leading hub for sustainable finance.”
Non-AMAS members can also become part of the new framework, stated AMAS.