The Financial Conduct Authority’s innovation hub has given the green light to Tribe, a discretionary impact wealth management firm.

Tribe Impact Capital, which claims to be the first discretionary wealth management firm in the UK dedicated exclusively to social, impact, and responsible investment, has received regulatory approval.

Tribe was set up as a partnership between LGT Vestra and the following executive partners: Amy Clarke, former head of private clients at the Charities Aid Foundation; Lizzie Scott, former head of marketing at Vestra Wealth; James Lawson, former founder of Ledbury Research; and Harry Catchpole, former manager from JP Morgan. David Scott, chairman of LGT Vestra, will chair the new venture.

The firm will offer a discretionary and advisory portfolio management service focusing only on assets that target a positive social impact. The partners have agreed to contribute at least 20 per cent of annual profits to an impact foundation that will invest in high impact and scalable mission-driven organisations.

As well as traditional negative screens, Tribe will focus on positive selection of responsible, sustainable and impactful investments, from direct bonds and equities, through to high impact private equity investments.

“Now more than ever we see the need for more capital alignment with businesses looking to address long-term, systemic social, economic and environmental challenges. As an industry, wealth management has a huge role to play, and whilst we acknowledge those addressing this growing investment opportunity, we feel a new approach is needed. One that focuses exclusively on wealth stewardship and creation that aligns with values and delivers long-term positive impact, for everyone,” said Clarke.

“That’s why we established Tribe. By managing client portfolios with a focus on sustainable and impact investing we can assist clients in going beyond singular financial growth to sustainable growth against values and impact as well as financial. We’re ultimately enabling our clients to infuse their wealth with a clear sense of purpose and mission”.

The FCA’s innovation hub is focused on encouraging innovation in financial services in the interests of consumers. As of August, it had received 608 requests for support, with 312 supported and 27 going through to authorisation.