A PROGRAM OF THE RESPONSIBLE INVESTMENT ASSOCIATION AUSTRALASIA
FUND MANAGER: CERTIFICATION RENEWAL APPLICATION FORM
Last Updated: February 2013 Introducing the Responsible Investment Certification Program
WHAT IS THE RESPONSIBLE INVESTMENT CERTIFICATION PROGRAM? The Responsible Investment Certification Program was created to help investors learn more about responsible investment products and services available in Australasia. The program also provides assurance, independent verification and information for consumers about the way in which responsible investment products and services operate. The Program provides training, education, marketing support, disclosure and guidance at all points in the investment cycle – for individual investors, financial advisers, dealer groups, fund managers and superannuation funds.
WHAT IS REQUIRED TO BECOME CERTIFIED? To become a certified responsible investment product or service provider, you must meet the strict disclosure requirements relevant to your licence category. You must also agree to make publicly available specific details of your product or service which will in turn help investors make an informed choice. Once you have become certified, you are licensed to use the Certification Symbol to demonstrate this status.
WHAT IS THE CERTIFICATION SYMBOL? The Certification Symbol is the Registered Trade Mark all certified products and service providers are licensed to use after receiving certification from the Responsible Investment Association Australasia (RIAA). The Symbol is owned and managed by RIAA. The Certification Symbol is designed to encourage informed choice about responsible investment products and services. By definition, the Symbol verifies that a Licensee has adopted the education and disclosure practices required for the category of Fund Manager. In turn, the Symbol indicates to investors that they can access information about the Licensee and their services from RIAA’s website.
TERMINOLOGY There is a range of terminology used to describe the products and services available for people who want to invest responsibly. Many of these terms will be familiar to you such as responsible investment, ESG integration, ethical investment, sustainable investment, socially responsible investment (SRI) or clean technology investment. The overarching term RIAA uses to describe the “family” of products and services which take environmental, social, ethical or governance issues into account when making investment decisions is responsible investment. To assist Licensees promote their product or service in a way that is most meaningful to their target market, the Certification Symbol is available featuring four different terminologies – Responsible Investment, Ethical Investment, Sustainable Investment and SRI.
Page 2 of 9 What you need to know to complete your Certification Renewal Application Form
WHAT IS REQUIRED BY RIAA IN ORDER TO BE CERTIFIED? 1. Fund Managers who apply a systemic responsible investment methodology in selecting, realising and retaining investments can apply to be certified and to license the Certification Symbol; 2. If the product is: Retail – the Fund Manager must provide full disclosure of their responsible investment methodology in the PDS; Wholesale – the Fund Manager must provide full disclosure of their responsible investment methodology in the Information Memorandum or Pitchbook; An MDA – the Fund Manager must provide full disclosure of their responsible investment methodology on the web page that relates specifically to this product; 3. Fund Managers who wish to be certified must: Describe in detail their responsible investment methodology and explain the specific processes, management systems and reporting frameworks followed for their responsible investment product/s. Disclose past performance results and a full list of historical stock holdings or investments (current six months prior for reasons of commercial in confidence). This information must be publicly available within two months of being certified. The Fund Manager can either include this material on their website or provide it to RIAA for inclusion in the Fund Manager’s certification profile. Submit their PDS, Information Memorandum or Pitchbook of the product/s they wish to be certified. Agree to an independence verification of their methodology and processes by Grant Thornton. 4. To assist in building awareness of responsible investment products and services and to promote the role the Certification Program, successful Licensees must commit to incorporating the Certification Symbol into their marketing and communications material. For example, including the Symbol in the certified product’s PDS or monthly performance reports, relevant website pages and relevant advertisements; 5. Successful Licensees must abide by the requirements outlined in the Certification Symbol Licence Agreement and the Certification Symbol Licensee Marketing Guide.
WHO SHOULD I CONTACT ABOUT MY RENEWAL APPLICATION? If you require any assistance completing your application contact: Joshua Edmunds Email: [email protected] Phone: +61 2 8228 8100 Address: Level 2, 22 Cooper Street, Surry Hills 2010 Australia
Page 3 of 9 Frequently Asked Questions
HOW LONG DOES THE LICENCE LAST? Your Certification Symbol Licence Agreement lasts for two years from the date that you sign it. Every two years thereafter you will be invited to renew your Licence Agreement.
WHAT COSTS ARE INVOLVED? The Certification Symbol is available only to current members of RIAA. Applications to the Certification Program are free for members. Membership of the Association is based on total funds under management: Fund Manager: < $100m $2,500 (incl. GST) Fund Manager: $100m - $20b $4,500 (incl. GST) Fund Manager: > $20b $5,500 (incl. GST)
HOW WILL MY RENEWAL APPLICATION BE ASSESSED? The information contained in this application is strictly confidential. Your application will be reviewed by the staff of RIAA to ensure that all answers have been thoroughly completed. Complete applications will be submitted for assessment to the Responsible Investment Certification Review Committee (CRC); comprising members of RIAA executive and board. A process is in place for the disclosure of any conflict of interest which may arise between the Certification Review Committee and Licence applicants. RIAA reserves the right to seek further information from the applicant and review the application criteria from time to time. If approval is granted in-principal, we will schedule a verification meeting with the program’s auditors, Grant Thornton. This meeting should take between one and two hours and is an Agreed Upon Procedure. It will verify that your internal processes and systems reflect the methodology outlined in your legal document and in your Certification Application. Finally, upon successful review by Grant Thornton, we will ask that you sign the Certification Symbol Trade Mark Licence Agreement. Upon receipt of a signed copy, you will receive confirmation of final approval.
HOW SHOULD I FILL OUT AND SUBMIT MY RENEWAL APPLICATION? This form must be completed on a computer and submitted electronically via email. Wherever possible, please insert or type your answer into the space provided for each question and avoid attaching any documents. This ensures that the Certification Review Committee is able to review your application with ease and clarity. If you apply different methodologies to your responsible investment products, you will need to complete a separate Fund Manager Certification Renewal Application Form for each product or suite of products.
WHAT HAPPENS AFTER MY RENEWAL APPLICATION IS SUBMITTED? The review process for the category of Fund Manager can take up to two months. Once your application has been reviewed and approved by the CRC, you will be asked to review and sign a Licence Agreement. Upon receipt, RIAA will clarify your choice of Certification Symbol, and issue you with the latest version of the Marketing Guidelines which will help you promote your status as a certified responsible investment fund manager.
Page 4 of 9 Fund Manager: Certification Renewal Application Form
CONTACT DETAILS
ORGANISATION APPLYING FOR LICENCE RENEWAL
CONTACT PERSON TITLE
POSITION DATE
BUSINESS ADDRESS
PHONE – Direct
PHONE – Reception
MOBILE FAX
WEBSITE
MEMBERSHIP STATUS
1. Only current members of RIAA can apply for Certification. Are you a current member of RIAA?
PRODUCTS AND METHODOLOGIES
2. Do you have more than one stated methodology for your responsible investment products? If YES you will need to fill out an application form for each product or suite of products with a different methodology.
3. Please nominate the responsible investment product/s you wish to be certified, clearly stating whether each product is retail, wholesale or both.
4. Which of the following issues do you systematically address in the selection, retention and realisation of the aforementioned investments? Labour Rights Environmental Social Ethical Governance
Page 5 of 9 5. RETAIL - If the product/s is retail, have you disclosed your responsible investment methodology in the Product Disclosure Statement according to the ASIC Disclosure Guidelines 1013DA? Additional comments if necessary
6. WHOLESALE - If your product/s is wholesale, have you included your responsible investment methodology in the Pitchbook, Information Memorandum or PDS in accordance with ASIC SRI Guidelines 1013DA? While such disclosure is not a legal requirement for wholesale products, it is a requirement under the Certification Program as this Program is specifically designed around informed choice and disclosure. Additional comments if necessary
7. Please insert directly into this form (please do not attach documents) the section/s of your Product Disclosure Statement, Information Memorandum of other legal documents which relate directly to the methodology of the responsible investment product/s within this application.
8. Describe the internal procedures, documentation and controls which support your responsible investment methodology. Please do not attach any additional material, but insert your response directly below:
9. How often do you monitor adherence to your responsible investment methodology?
10. Describe your procedures for monitoring adherence to your responsible investment methodology.
11. If an investment no longer meets your stated methodology or criteria:
a.) What is the timeframe for divestment? Note: Please quantify the time period (i.e. 2 months, 6 months, etc), and avoid statements like “XXX trades out of the stock within a reasonable timeframe with regard to minimising any impact on the price.”
b.) How do you communicate your stock divestment to your clients? How is this achieved and how soon after divestment?
c.) Are companies advised when they are removed from X portfolio? How is this communicated and how soon after divestment?
12. If your product has negative screens, do you have any materiality thresholds that apply to those screens? If yes, please describe them.
13. Do you use external research to inform and manage your responsible investment methodology? If so, where do you obtain this research from and how frequently?
Page 6 of 9 14. In order to receive Certification, Fund Managers are required to provide a complete list of all investments or stock holdings (six months prior) for each responsible investment product. This information will be accessible to investors either via your website or RIAA’s website in the Certification Directory. Do you agree to ensure a complete list of all investments for each product is available on a quarterly basis?
15. Please insert here (do not include attachments) a full list of the investments or stock holdings for your product/s (six months prior).
16. In order to receive Certification, Fund Managers are also required to provide details of the performance history of your product/s. This information will be accessible to investors either via your website or RIAA’s website in the Certification Directory. Do you agree to ensure the performance results for each product is available on a quarterly basis?
17. Please insert here (do not include as an attachment) the most recent performance report for your product/s?
RENEWAL APPLICATION VERIFICATION
18. Your Renewal Application will be reviewed by RIAA and forwarded for verification to the independent auditors, Grant Thornton Services (NSW) Pty Ltd (‘Grant Thornton’). Grant Thornton will then contact you to arrange a face to face meeting in order to review the contents of your application. The meeting will last for approximately one to two hours. Please ensure that you have all documentation regarding the methodology and systems for monitoring and adherence to your responsible investment policy at the meeting with Grant Thornton and that relevant staff are also present. I agree to meet with a representative from Grant Thornton in order to have my renewal application reviewed. I agree that Grant Thornton will report directly to RIAA and acknowledge that Grant Thornton’s report will not be made available to my organisation.
19. The following days, times or dates in the coming month are most convenient for me to meet with Grant Thornton.
CHOICE OF CERTIFICATION SYMBOL As you are aware, one of the key benefits of the Certification Program is that certified fund managers are licensed to use the Certification Symbol. The Symbol indicates to clients that you offer an investment product that takes environmental, social, ethical or governance issues into account, that you have been certified by RIAA according to the strict disclosure requirements of the Program, and that investors can easily find information about your product on RIAA’s website.
Page 7 of 9 20. Which of the Certification Symbols have you used in the last two years? Responsible Investment Sustainable Investment Ethical Investment SRI We haven’t used the Symbol. . However, as part of my Renewal to the RIAA Certification Program, I will ensure that we include the symbol in at least three distinct locations (e.g. website, newsletter, brochures, presentations etc) in the next three months.
21. Where have you used the Certification Symbol to promote your status of being a certified fund manager? Advertisements Brochures Website Newsletters PDS or offer documents Monthly/Quarterly reports Presentations Other: please provide details Additional comments
22. Please insert four (4) examples of where you have used the Certification Symbol. Ideally these should be links to current pages on your website. Alternatively, please attach copies of the material: Example 1: Example 2: Example 3: Example 4:
23. How often do you discuss the Certification Program or your status as a certified fund manager with clients or partners? Select (double click on “Select” to see choices)
24. If you would like to use another variation of the Certification Symbol to promote your status as a certified fund manager, please select only one from the list below. Responsible Investment Sustainable Investment Ethical Investment SRI
25. How long did it take you to fill out this application? hrs min
PRESENTATION OF CERTIFICATE If your application is successful, RIAA will present a Certificate to your organisation. Which Certification Symbol would you like to appear on your Certificate? Select from list (double click on “Select” to see choices)
WHAT HAPPENS NOW? Your Certification Renewal Application Form will be reviewed by RIAA and forwarded to the Responsible Investment Certification Committee for verification. RIAA will confirm receipt of your application via email within three business days after submission. Your application can take up to two months to be verified by Grant Thornton. Once your application is verified and reviewed, RIAA will execute the Terms in counterpart, grant the licence to you on those Terms, and return a copy of the executed Terms to you. RIAA manages Australasia’s leading responsible investment website which contains information about each certified responsible investment product and service offering in order to promote disclosure, comparability and informed choice.
Page 8 of 9 To this end, we seek your written approval to disclose your name and contact details and your answers to Questions 3, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16 and 17 as set out in this Application Form. By signing this application, you provide this approval and declare that the information provided is true and accurate. By submitting this application you also undertake to advise RIAA of any changes to the information contained in this application form that may occur at any point after the application is submitted for consideration through to the end of the period of your Licence Agreement.
NAME
POSITION
DATE
VERSION August 2011
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