Comply-of-Explain

Asset manager signatories achieve conformity with our Standards on a comply-or-explain basis. A Disclosure Statement (available to investors on request) details whether the asset manager is in compliance with the standard or explains why they are not.

Benefits to a Comply-or-Explain Approach:

• Allows the industry to retain its dynamic and diverse nature without requiring constant changes to our Standards.
• Provides flexibility where our Standards may differ from local laws or regulation.
• Using “explain” in addition to “comply” avoids our Standards being overly prescriptive or requiring a lengthy list of standards to cater for all potential signatories.

We do not publicly disclose an asset managers Disclosure Statement which indicates whether they have complied with a Standard or offered an explanation why not. Investors should be provided with this document upon request.