lthough different definitions for materiality apply, the consensus among investors is that a material ESG issue is a fundamental value driver of a company or security that affects the income statement, balance sheet, and cash-flow statement positively or negatively.
When it comes to ESG reporting, survey respondents and roundtable participants say that they incorporate governance factors into their investment analysis to a greater extent than they incorporate environmental and social factors.
Creditor factoring generally delays payments to creditors to fund a company’s operations. While such arrangements may help companies in smoothing operating cashflow volatility, often it is used as a last resort to manage liquidity problems. Investors find out about this practice only when “other items” in current liabilities become too big to miss when it may be too late to take action.
For most of 2018, the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry captured the attention of many in Australia. Unfortunately, the issue of mis-selling is a global one.
A survey that fails to address several key issues has obliged the European Commission to postpone a review of the revised Markets in Financial Instruments Directive, sources say. The survey "didn't provide any ideas or solutions, and it's not relevant to the problems the industry faces," one source says. Practice Insight (16 Jan.)
The UK Financial Conduct Authority and the Bank of England have announced a series of deadlines for Libor phaseout. The first deadline is March 2, when users and issuers of derivatives should shift to the Sterling Overnight Index Average. Pensions & Investments (free access for SmartBrief readers) (16 Jan.)
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