CFA Institute Taps Leading Economist John Kay to Lead Future of Finance Project, Unveils Statement of Investor Rights

CFA Institute and a team of prominent financial industry leaders including Advisory Council Chair John Kay have launched the Future of Finance project, a long-term global effort to shape a trustworthy, forward-thinking financial industry that better serves society. The project aims to provide the tools to motivate and empower the world of finance to commit to fairness, improved understanding, and personal integrity. Led by Kay, the advisory council is comprised of a diverse group of experts from finance, education, and media. To learn more about the project and find ways to participate, visit www.shopwtn.com/FutureFinance. 

“The global financial industry can be an extraordinary force for good, but there is much work to be done to shape the industry for future generations,” said Kay, chair of the Future of Finance Advisory Council. “This project is designed to engage professionals and investors in and outside of finance to help solve problems with the global financial system. We can affect positive change in finance, but change starts with all of us — industry leaders, financial professionals, government agencies, financial regulators and the public. It’s an ambitious project that aims not just to gather the best ideas, but to make them a reality.”

As a first step, the Future of Finance project has unveiled the Statement of Investor Rights, a list of principles intended to help buyers of financial service products demand the conduct they are entitled to expect from financial service providers. The list applies to financial products and services such as investment management, research and advice, personal banking, even insurance and real estate, and is intended to help investors demand that financial professionals abide by these rights. The document includes rights that investors are entitled to expect such as objective advice, disclosure of conflicts of interest, and fair and reasonable fees.

“The Statement of Investor Rights emphasizes the concept that the investor must always come first, and lays a solid foundation for this project. Our plans are lofty as we develop events, publications, and significant research-based tools to reinforce the need for ethical conduct and professional practice to restore trust and confidence in finance,” said John Rogers, CEO and president of CFA Institute. “The Future of Finance project is a critical way for us to encourage thought leadership and engagement, as we seek to shape a more forward-thinking industry. CFA Institute is in a unique position to lead this effort, promoting the highest standards of ethics, education, and professional excellence for the ultimate benefit of society.”

The Future of Finance project is focused on six primary topics of interest for all who rely on finance, including putting investors first; safeguarding the system; retirement security; financial knowledge; regulation and enforcement; and transparency and fairness. The project plans rigorous research and recommendations to address each area, and will produce accessible tools to encourage broad adoption and widespread change throughout the global financial system. To read more about these topics and learn how to take action, visit www.shopwtn.com/FutureFinance.

The advisory council will issue a call to action on 20 May at the CFA Institute Annual Conference in Singapore, detailing the objectives and future plans for the Future of Finance project. The call to action will include an overview of the primary problems with finance, and how the project will tackle those problems.

Initial members of the Future of Finance Advisory Council are:

Chair

John Kay, Economist and Author

Members

Keith Ambachtsheer, Director, Rotman International Centre for Pension Management, Rotman School of Management, University of Toronto

Paul Chow, Former Chief Executive, Hong Kong Exchanges and Clearing Limited

Elizabeth Corley, CEO, Allianz Global Investors

Tom Keene, CFA, Editor-at-Large, Bloomberg News

Ira M. Millstein, Senior Partner of Weil, Gotshal & Manges LLP, and Co-Chair of the Millstein Center for Global Markets and Corporate Ownership, Columbia Law School

Saker Nusseibeh, CEO and Head of Investment, Hermes Fund Managers

Robert C. Pozen, Senior Lecturer, Harvard Business School and Senior Fellow, Brookings Institution