MAS to Combat Greenwashing in the Asset Management Industryby Fintech News Singapore February 3, 2022
The Monetary Authority of Singapore (MAS) is fully committed to working with the asset management industry to combat greenwashing at both the fund and firm-level.
Tan Keng Heng, MAS’ Executive Director said during the Investment Management Association of Singapore’s 8th Regulatory Forum that the regulator intends to introduce ESG-specific requirements on fund naming, prospectus disclosures and periodic reporting disclosures.
This will set out MAS’ supervisory expectations for retail ESG funds and help mitigate the risk of greenwashing in fund offer documents.
He added that MAS had shared its proposals earlier with Investment Management Association of Singapore (IMAS) for their comments and are awaiting the industry’s feedback.
At the firm level, MAS said that it expects asset managers to “walk the talk” and ensure that their sustainability commitments reflect actual capabilities and practices on the ground.
Managers of ESG funds in particular should consider implementing mechanisms to monitor compliance with stated investment objectives, including exposure limits for the funds sold.