ABS launches new guidelines for sustainable private banking, wealth management practices
Ilyas Salim
THE Association of Banks in Singapore (ABS) on Friday (Oct 14) launched a new set of guidelines to help private banks integrate sustainability into their business models and practices.
On the same day, the Private Banking Industry Group (PBIG), which includes 14 major banks, launched a common industry training benchmark to upskill private banking relationship managers in the area of sustainability.
ABS’ new sustainable guidelines, which were developed with technical input from World Wide Fund for Nature (Singapore), cover private banking activities ranging from wealth planning and investments to financing.
The guidelines underlined four sustainable investment approaches on how to exclude certain sectors or companies from the investment universe; how to integrate environmental, social and governance (ESG) factors in investment analysis; thematic investing; and investing with the intention of generating positive, measurable social and environmental impact.
ABS director Ong-Ang Ai Boon said the guidelines will help private banks and their clients in their transition towards a low-carbon economy.
Recognising that each bank may be at a different stage of their sustainability journey, ABS said the private banks are expected to implement the guidelines in a way that is commensurate with the size and nature of their activities.
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PBIG’s common industry training benchmark, meanwhile, will help upskill private banking relationship managers in the area of sustainability.
The benchmark prioritises four out of the 12 sustainable finance technical skills and competencies highlighted by the Institute of Banking and Finance Singapore (IBF) and the Monetary Authority of Singapore.
They are sustainable investment management, carbon markets and decarbonisation strategies management, non-financial industry sustainability developments, and climate change management.
IBF-accredited courses based on these technical skills and competencies will count towards meeting Client Advisor Competency Standards Continuing Professional Development requirements and IBF certification, PBIG said.
It encouraged private banks to align their training frameworks to cover the four technical skills and competencies, along with ABS’ new sustainable private banking and wealth management guidelines.
Bank of Singapore was one of the co-chairs of the ABS taskforce which developed the guidelines. It is also a member bank of the PBIG sustainability taskforce that developed the training benchmark.
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