CFA Institute CEO Paul Smith says Investment Profession is at Tipping Point: Challenges Members to Redefine Value and Reclaim Investor Trust

22 May, 2017

Philadelphia United States

Investment management professionals from around the world gather at CFA Institute Annual Conference in Philadelphia to debate the future state of the profession

CFA Institute, the global association of investment management professionals, today prescribed the four steps the industry must take to raise professionalism and confront changes that impact investors worldwide. Paul Smith, CFA, president and CEO of CFA Institute, invited an audience of more than 1,800 professionals from 70 countries at the 70th CFA Institute Annual Conference at the Pennsylvania Convention Center in Philadelphia, to commit to higher standards and help make the system work for all investors.

In a wide-ranging speech that addressed issues that Smith described as “existential”, he called on members of CFA Institute to take the lead in raising professionalism to a new level. “We all like to say we put our clients first, but it is not enough to proclaim a formal fiduciary commitment to them. We have to live up to that fiduciary standard every day and our clients and investors have to believe that we do,” Smith said. “I want us to stand even more vigorously and vocally for candor and transparency.”

In his address, Smith outlined four steps that investment management professionals must take to make the profession more trustworthy and reinforce its value. These are: revising business models, taking the lead in earning trust, recruiting the right kind of professionals, and adapting to new technology.

“The fundamental purpose of finance is to contribute to society through increases in societal wealth and well-being. We need more people in our professional ranks who have clear ethics and a sense of commitment, people who see this career as a way to do a lot of good,” Smith said. “We also need more diversity in our ranks. Not just gender, but other diversity dimensions such as ethnicity, culture and work style.”

Conference Recognizes "Putting Investors First" Initiative

The challenge from Smith coincides with the fourth annual Putting Investors First initiative, a global program that focuses on promoting the needs and rights of investors.

“For the fourth year, the Putting Investors First initiative is raising awareness of how investment professionals can make changes to build better relationships with clients and investors, improve the bottom line and benefit society,” said Smith. “We want to remind investment professionals that by committing to the Statement of Investor Rights, adopting the Asset Manager Code, and incorporating the Integrity List into practice, we can create an environment where both investment professionals and investors can thrive.”