The Federal Government's pledge to "examine how best to foster growth of impact investment in Australia", in its response to the Financial System Inquiry (FSI), has been welcomed by the Institute of Public Accountants (IPA).
IPA chief executive, Andrew Conway said a legislative reform that creates greater opportunities for Australians to align their investments with their ethics would be a positive move.
"The concept of social conscience investment is an area that we should all be making an effort to embrace; it creates win-win opportunities for investors and society," Conway said.
"If investors can attain a relatively healthy return on their investments, why not do so in projects that deliver greater social outcomes.
"The Government's announcement to develop legislative amendments to provide greater certainty for private ancillary funds wishing to invest in social impact bonds, is to be commended," Conway said.
"Consumer demand and superior financial performance have driven a huge growth in ethical investment around the world, including Australia."