The report called on regulators and trade bodies to do more to make social impact investing easy for advisers and a mainstream option for clients.
It also made recommendations to European and UK authorities and financial regulators on how to integrate social investment with financial services regulation, in particular around the regulatory definition of suitability.
Luke Fletcher, a lawyer for Bates Wells & Braithwaite, said: “The report makes the case for a new standard of best practice which involves advisers asking clients about social goals, as well as more traditional financial goals.”
David Thomson, director of policy and public affairs for the Chartered Insurance Institute and a member of the working group, said: “At this stage the key issue is debating recommendations and the concept of social impact investment in terms of suitability, regulation, tax and advisory requirements. Clients want social impact investing so it must be part of an IFA’s arsenal.”