Disclaimer
BY CLICKING ON “I AGREE”, I DECLARE I AM A WHOLESALE CLIENT AS DEFINED IN THE CORPORATIONS ACT 2001.
What is a Wholesale Client?
A person or entity is a “wholesale client” if they satisfy the requirements of section 761G of the Corporations Act.
This commonly includes a person or entity:
who holds an Australian Financial Services License
who has or controls at least $10 million (and may include funds held by an associate or under a trust that the person manages)
that is a body regulated by APRA other than a trustee of:
(i) a superannuation fund;
(ii) an approved deposit fund;
(iii) a pooled superannuation trust; or
(iv) a public sector superannuation scheme.
within the meaning of the Superannuation Industry (Supervision) Act 1993that is a body registered under the Financial Corporations Act 1974.
that is a trustee of:
(i) a superannuation fund; or
(ii) an approved deposit fund; or
(iii) a pooled superannuation trust; or
(iv) a public sector superannuation scheme
within the meaning of the Superannuation Industry (Supervision) Act 1993 and the fund, trust or scheme has net assets of at least $10 million.that is a listed entity or a related body corporate of a listed entity
that is an exempt public authority
that is a body corporate, or an unincorporated body, that:
(i) carries on a business of investment in financial products, interests in land or other investments; and
(ii) for those purposes, invests funds received (directly or indirectly) following an offer or invitation to the public, within the meaning of section 82 of the Corporations Act 2001, the terms of which provided for the funds subscribed to be invested for those purposes.that is a foreign entity which, if established or incorporated in Australia, would be covered by one of the preceding paragraphs.
Sustainable Investing
Corruption definition
Corruption is defined as behavior by individuals that aims to secure a monetary advantage in business or politics through illegal dealings. It typically covers bribery – illegal payments made to secure a contract or service – along with falsifying documents to enhance the value of a product. The word itself derives from the Roman Latin past participle of corrumpere, meaning ‘to mar, bribe or destroy’.
Investopedia defines it as “dishonest behavior by those in positions of power, such as managers or government officials. Corruption can include giving or accepting bribes or inappropriate gifts, double-dealing, under-the-table transactions, manipulating elections, diverting funds, laundering money and defrauding investors.”1
Transparency International, which works to expose corruption among governments, companies and wealthy or powerful people, defines corruption as “the abuse of entrusted power for private gain”.2 This can involve cronyism, where someone’s friends are given valuable contracts outside the normal market tendering process, and nepotism, where a relative is appointed to a position of power even though they are unqualified or unsuitable for the role.
Creating returns that benefit the world we live in
Country Sustainability Ranking
Levels of corruption in countries accounts for 10% of the weighting in the Robeco Country Sustainability Ranking, making it one of the most significant things that analysts look for when assessing how sustainable a nation is. This information is then used as part of the governance factor in ESG when deciding whether to buy that country’s sovereign bonds.
The two sources for it are the Corruption Perception Index, which has been published by Transparency International since 1995, and the Control of Corruption (CoC) Index, which is one of the six Worldwide Governance Indicators that have been published by the World Bank since 1996. The CoC “reflects perceptions of the extent to which public power is exercised for private gain, including both petty and grand forms of corruption, as well as ‘capture’ of the state by elites and private interests”.3
Some financial crime broadly falls under the banner of corruption, though money laundering and insider dealing are seen as specific crimes in their own right. Ponzi schemes in which profits are paid to investors using the income from newer investors instead of an underlying asset is similarly viewed as financial fraud. The biggest pure source of corruption remains bribery, which has often proved commonplace in emerging markets that lack regulation or a properly functioning judicial system.
See also:
Many companies including Robeco put limits on the value of gifts that employees can receive as presents or hospitality to avoid charges of undue influence.
Footnotes
1https://www.investopedia.com/terms/c/corruption.asp
2https://www.transparency.org/en/what-is-corruption
3https://info.worldbank.org/governance/wgi/Home/Reports
