Low-cost robo-adviser Nutmeg says to be the first UK wealth manager to provide environmental, social and governance (ESG) scores, calculated using data points from MSCI. Its chief investment officer, Shaun Port, has encouraged other providers to follow their example and become more transparent, rather than wait to be forced to do that by the regulations. According to him, many investments have hidden behind the terms such as ethical, green, ESG for a long time, and their meaning was not always clear.
The importance of the robo-advise, and its effect on individual investors and savers has already been examined in several reports done by BETTER FINANCE. Among diverse aspects, the latest study has also looked into transparency, and has found, that providing “fair, clear and non-misleading information” is one of the least enforced investor protection rules in the EU. However, according to BETTER FINANCE it is the cornerstone of a sound financial industry that needs to be taken into consideration.
See BETTER FINANCE’s report ROBO-ADVICE: EUROPEAN INDIVIDUAL INVESTORS TAKE A LOOK UNDER THE HOOD. To read more, visit Funds Europe.