The Asset Management Association Switzerland (AMAS) is in favour of self-regulation, as opposed to a binding law, to fight greenwashing.
The principle of self-regulation has proven itself as an alternative form of regulation for the Swiss financial sector for decades, and it is an essential pillar of the architecture of the local financial market, AMAS’ senior sustainability expert Aurélia Fäh wrote in a post in a Swiss publication.
The revised law on CO2 emissions for the period 2025 to 2030 also changes the law on unfair competition. The law describes as unfair information relating to the climate impact of goods and services that cannot be proven on objective and verifiable grounds.
Associations in Switzerland have designed binding self-regulations over the past three years in the field of sustainable finance.
For example, AMAS drafted the principle-based self-regulation for sustainable asset management that came into force in September 2023. The self-regulation deals with transparency, disclosures, and greenwashing.
Article 28 said products advertised by collective investment schemes must not contradict information provided in relevant legal documents, such as the prospectus, fund regulations, company agreement, and/or key information document (if available).
Thus, self-regulation prevents and combats greenwashing by increasing the quality of collectively managed sustainable investments through binding standards, and improving transparency through comprehensive documentation and reporting requirements, Fäh added in the post.
The AMAS self-regulation follows that of the Swiss Bankers Association (SBA), which came into force in January 2023. The ESG reporting standard published by the Swiss Pension Fund Association (ASIP) is also in place since last year.
The Swiss Insurance Association (SVV) is currently working with its members on drafting a self-regulation, which will be published shortly, Fäh added.
The Swiss Finance Ministry (FDF) is also working on a regulation to implement the Federal Council’s view on fighting greenwashing.
The FDF will submit a proposal for consultation to the Federal Council on the regulation by the end of August at the latest, unless the financial industry will put forward a self regulation on the matter, it said.
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