Voluntary sector leaders and social finance experts are supporting proposed amendments to the Financial Services Bill that would require the successor organisation to the Financial Services Authority to support social investment.
Chris Leslie, Labour MP for Nottingham East and shadow financial secretary to the Treasury, has proposed establishing a social investment panel to advise the new Financial Conduct Authority.
Leslie has also tabled an amendment that would require the FCA to carry out its work in a way that promotes the development of social finance.
Sir Stuart Etherington, chief executive of the National Council for Voluntary Organisations, has written to Mark Hoban, the Conservative financial secretary to the Treasury, asking him to support the amendments.
Nineteen other voluntary sector leaders and social finance experts have signed the letter in support.
"The amendments pave the way for the growth of the social investment market, which is about to receive a large injection of capital from Big Society Capital," wrote Etherington.
"The amendments are simple and stand-alone, do not cost the taxpayer and do not interfere with any other aspects of the bill.
"At a time of austerity and public funding cuts for charities, the amendments would help to support the role of social investment to finance civil society and would help the UK to develop as a leading international destination for social investment."
The FCA is expected to replace the financial services regulator in 2013.
The bill is at committee stage and is expected to receive royal assent by the end of the year.
List of signatories in support of amendments to the bill
Caron Bradshaw, chief executive, Charity Finance Directors' Group
Sir Stephen Bubb, chief executive, Association of Chief Executives of Voluntary Organisations
Geoff Burnand, chief executive, Investing for Good
Andrew Croft, chief executive, Can Mezzanine
Sir Stuart Etherington, chief executive, National Council for Voluntary Organisations
Michele Giddens, co-founder, Bridges Ventures
Sally Goodsell, chief executive, FSE Group
Malcolm Hayday, chief executive, Charity Bank
Peter Holbrook, chief executive, Social Enterprise UK
Ben Hughes, chief executive, Community Development Finance Association
David Hutchison, chief executive, Social Finance
Jonathan Jenkins, chief executive, Social Investment Business
Pradeep Jethi, chief executive, Social Stock Exchange
Nigel Kershaw, chief executive, Big Issue Invest
Stephen Lloyd, senior partner, Bates, Wells & Braithwaite
Nick O’Donohoe, chief executive, Big Society Capital
Rod Schwartz, chief executive, Clearly So
Penny Shepherd, chief executive, UK Sustainable Investment and Finance Association
Simon Tucker, chief executive, the Young Foundation
James Vacarro, managing director, Triodos Investment Banking