Could you explain the different types of certification approval a product/service can receive?

Following rigorous assessment, a product/service certification can be approved unconditionally, conditionally, with recommendation(s), or without recommendation(s). Product/services are also at times approved by the RIAA Executive and not through the Certification Assessment Panel.  

• Executive Approval occurs when a recertifying product/service meets the requirements of the Responsible Investment Standard for its category and has remained unchanged from one certification to next; or if a new product seeking certification is a duplicate of an existing certified product.

• Approval with recommendations occurs when a product/service meets the minimum requirements of the Responsible Investment Standard, but the Program has specified changes that could be made to bring the product/service closer to leading Responsible Investment practice.

• Unconditional Approval occurs when a new or recertifying product/service meets the requirements of the Responsible Investment Standard in full at the point of certification. Whether they are being re-certified or certified for the first time, they do not require practice or documentation changes. Unconditional approvals can occur through the RIAA Executive or via the Certification Assessment Panel.

• Conditional Approval occurs when a new or re-certifying product/service requires cosmetic changes (not changes to the investment strategy or process). Examples of conditional approvals include:

• Updating a Product Disclosure Statement (PDS) to reflect current practices that adequately avoid significant harm;

• Amending electronic documentation such as a website or product factsheet to align with the Responsible Investment Policy or PDS;

• The linking of key product documentation with the responsible investment strategies using hyperlinks or direct references.

The Certification Program typically allows 90 days for a product to meet their conditions. Conditional Approvals are applicable only if a remediation plan is provided.

How are product providers advised of the approval type, conditions, timeframes and requirements for their products/services?

Upon completion of the certification assessment approval, an outcome letter is sent to the product provider advising them of their approval type, any conditions, applicable timeframes and requirements. If the certification is conditional, upon completion of their approval conditions, the Certification Program formally advises the product provider that the product has been checked and confirmed for unconditional approval.

Does RIAA monitor whether applicants meet conditions within required timeframes?    

Yes. RIAA has internal systems in place to monitor certified products/services and ensure they meet requirements in line with certification requirements.

What if an applicant cannot guarantee that their remediation plan will be accepted by other parts of their organisation. Can they still obtain conditional approval?  

RIAA understands there may be instances where the applicant’s ability to meet conditions rests on formal approval from an investment committee. In this case the Certification Team will work with the applicant to determine an appropriate timeframe by when the remediation plan is accepted. For newly certifying products, conditional approval cannot be granted until the plan has been formally approved. For recertifying products, the Program will take a risk-based approach to identifying if the pre-existing certification must be discontinued in the interim.

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