The Charity Commission has published a consultation – closing 20 May – on the clarity of draft revised guidance about adopting a responsible (or ‘ethical’) approach to investing charity funds. The consultation questions are outlined below.

Question 1: As a result of reading this draft guidance, how clear are you about the duties and good practice that apply to decisions about a charity’s financial investments, whether or not the charity adopts a responsible investment approach?

Question 2: As a result of reading this draft guidance, how clear are you about what a responsible investment approach is?

Question 3: Is the phrase ‘responsible investment’ an appropriate term for the approach to investing in line with a charity’s purpose and values?

Question 4: How confident would you be, as a result of reading this draft guidance, that adopting a responsible investment approach is a valid option?

Question 5: In the section ‘Check if extra rules apply’, we say that there are some situations where a responsible investment approach can be taken only if at least one of five tests is met.
As a result of reading this draft guidance, how clear are you about when these tests are relevant to the decision to take a responsible investment approach?

Question 6: Do you have any other comments to make on the draft guidance?