What RIAA looks for in certifying financial advisers and financial advisory groups
When certifying financial products and services, RIAA verifies that responsible investment processes are formal, consistent, auditable and fit-for-purpose. ESG factors must be accounted for in the investment process, and product claims must be honest and reliably represented. Investments must be managed by active stewards, where relevant, we look for engagement with companies to improve their behaviour and voting in line with the responsible objectives and claims of the fund. Portfolio holdings and stewardship disclosure are mandatory aspects of RIAA Certification representing above-market levels of transparency and accountability. This approach ensures that retail investors and consumers understand what to expect of certified products and services and can exercise informed choice.
Financial Adviser requirements
1 Be Licensed
Meet operational and disclosure requirements and make publicly available specific details of their services as laid out under the respective category of the Certification Standard.
2 External accountability
Meet operational and disclosure requirements and make publicly available specific details of their services as laid out under the respective category of the Certification Standard.
3 Quality and Threshold Tests
Quality: Is product information relevant and consistent? Threshold: Would a reasonable consumer expect the claims made by the product? Do the claims risk confusing or undermining the credibility of the collective industry or others’ Responsible Investment efforts and performance?
4 Promote the Standard
Promote the Standard by incorporating the RI Certification Symbol into marketing and communications material in accordance with the Certification Symbol Licensee Agreement and the Licensee Marketing Kit and Style Guide
5 Concerns & Grievances
Agree to participate in good faith in the Program’s Concerns & Grievance Policy and Procedures with a view to protecting the reputation of responsible investment peers, individual investors and/or the responsible investment industry as a whole.
6 RIAA Member
Hold current membership with the Responsible Investment Association Australasia.
Additional Requirements Advisory Groups
Advisory groups must meet the requirements (above), plus;
1 Be legal
Meet operational and disclosure requirements and make publicly available specific details of their services as laid out under the respective category of the Certification Standard.
2 Be trained or experienced
Their key and responsible investment personnel have at least two years’ relevant experience providing responsible investment advice and can demonstrate how they stay up to date on developments in responsible investing.
3 Have a Responsible Investment Policy
Have in place a published responsible investment charter or policy that governs the way responsible investment is considered and implemented across the entire portfolio.
4 Promote responsible investment services
Include responsible investments as part of the services systematically delivered to ALL clients, that should be able to be demonstrated by clear auditable process (e.g. such as questions in Fact Find, or online sign up).
5 Promote the Program
Incorporate the Certification Symbol into their marketing and communications material in accordance with the Certification Symbol Licensee Agreement and the Licensee Marketing Kit and Style Guide.
The process
While the certification process may vary between categories, our most popular category of products and services takes a distinct approach. All newly certifying products and services undergo the following process. For all other categories please email us at enquiries@responsibleinvestment.org.
1 —
Meet the eligibility requirments as above
You can speak with the Membership Team to discuss eligibility.
2 —
Submit application
Email enquiries@
responsibleinvestment.org
3 —
RIAA certification team assessment
RIAA certification team assesses application.
4 —
RIAA Certification team approval
RIAA certification team approves the application.
5 —
Commit to updates & ongoing requirements
As per the Program criteria, during the certification term (generally two years). Material changes may trigger early recertification.
6 —
Commit to updates & ongoing requirements
As per the Program criteria, during the certification term (generally two years). Material changes may trigger early recertification.
7 —
Product Claims Spot Check
Submit to RIAA’s spot checks conducted by the RIAA Certification Team or a member of the IVP.
What our members with certified products and services have to say
RIAA has played and continues to play a central role in mainstreaming responsible investment at the same time as raising responsible investment standards to safeguard RI’s integrity and impact. RIAA is innovative and adaptable in pursuit of its purpose, working across the investment ecosystem as well as beyond it, with a recent highlight being the energy and insight contributed to the massive Australian Sustainable Finance Initiative.
‍
Dr Stuart Palmer
Australian Ethical