Debate to discuss the way forward in SIBs, three stories today, happy reading:
How To Leave A Mark
David Brooks – New York Times
The big debate during the 20th century was about the relationship between the market and the state. Both those institutions are now tarnished. The market is prone to devastating crashes and seems to be producing widening inequality. Government is gridlocked, sclerotic or captured by special interests. Government is an ever more rigid and ineffective tool to address market failures.
Delivering Early Wins To Support Impact Investing
Krystian Seibert – Pro Bono Australia
There are some simple and inexpensive policy changes which can help grow impact investing in Australia, and the re-establishment of the Prime Minister’s Community Partnership provides a unique opportunity to deliver them.
Making it Easier for Private Ancillary Funds to Make Impact Investments
Wholesale investors are able to access a wider range of investments than retail investors, however, reduced protections and disclosure requirements apply than in the case of retail investors.
Wholesale investors tend to be banks, bigger businesses and high-net worth individuals, and everybody else is a retail investor.
Many Private Ancillary Funds are established by high net worth individuals who in their own right would meet the wholesale investor tests under the Corporations Act 2001 (Cth).
However, under the current law, there is a lot of uncertainty about whether such Private Ancillary Funds themselves meet the wholesale investor tests, which can make it difficult for them to invest in Social Impact Bonds as they are only available to wholesale investors at this stage. Other types of impact investments also tend to only be available to wholesale investors.
This article outlines in more detail just how frustrating the situation can be for a Private Ancillary Fund which is seeking make a difference through impact investing.
The Financial System Inquiry looked at this issue last year – and in its final report it recommended that it be addressed.
This can be achieved by way of some minor legislative changes, which would unlock more capital within Private Ancillary Funds to be used towards investing in social impact bonds and other impact investments.
Business-Based Solutions Can Address Violence, Poverty
Jonathan Coleman – Lancaster Online
Consider a Social Impact Bond to fund efforts to reduce poverty in the city.