The head of the CFA Institute is calling on the investment professionals to do more to restore trust in the financial industry.
At its annual conference in Chicago Monday, John Rogers, president and CEO of CFA Institute, outlined three steps the profession must take to bolster investor confidence, including: advocating more strongly for professional ethics; focusing on financial activities that enable economic and social progress; and engaging with a wider community.
He also unveiled a list of 50 specific actions investment professionals can take to restore public trust, which is focused on practical steps to demonstrate ethical behavior, such as: putting client interests first; recommending products with transparent payoffs, costs, and risks; helping clients focus as much on risk as performance; pushing their firms to treat clients properly; and, advocating for stronger regulations to protect investors.
Integrity List: 50 Ways to Restore Trust in the Investment Industry
“The duty to lead the investment business out of this crisis falls first on us. It rests on the shoulders of those with the highest levels of expertise, professional and ethical standards,” Rogers said. “The time has come for every one of us to step up, and take personal responsibility for restoring trust. This starts in our places of work, and it extends from there out into the community.”
“Your business exists thanks to a social contract granted in exchange for an expectation of professional services. Our firms will thrive if we offer services that truly help clients. If our companies engage in money games and place owners’ interests before clients, they will not fare well,” he said.