CFA Institute Hosts “Future of Finance” Forum in Beijing

CFA Institute today hosted the “Future of Finance” Forum in Beijing, bringing together more than 200 financial industry experts, business executives and industry leaders from China and global markets, to share their insights on the future of the finance profession in China and discuss how to prioritize investor interests and improve investor outcomes.

The event is part of CFA Institute’s global “Future of Finance” initiative, which was created to provide tools to motivate and empower the investment profession to create an environment where investor interests come first, markets function at their best, and economies grow.

As part of the” Future of Finance “initiative, CFA Institute released its Future State of the Investment Profession report. This study explores the significant internal and external disruptive forces facing the investment management industry and potential necessary changes that might be required to influence the future state of the profession for best possible outcomes for investors, the industry, and society. It warns that investment industry leaders who fail to transform their business models may jeopardize the future of their firms. The report provides a guide to investment industry leaders looking to adapt, and it is time to coincide with the “Putting Investors First” campaign, a recurring CFA Institute annual initiative to focus the attention of the industry on the needs of investors around the world.

“Our industry is at an inflection point, where success or failure hangs in the balance,” said Nick Pollard, Managing Director, APAC, CFA Institute. “Industry leaders will make decisions over the next five years that will have an impact not just on their firms, but also on the entire landscape of the investment profession as we know it.

The study provides a series of planning scenarios derived by combining megatrends impacting all industries with other forces specific to the investment industry. These can be used as tools for leaders in investment management to steer the future of their businesses and ultimately improve outcomes for end investors.

Among the megatrends identified are technological advances, redefined client preferences, new macroeconomic conditions, different regulatory regimes reflecting geopolitical changes, and demographic shifts. The scenarios are not forecasts but include possibilities for the future state of the investment industry.

“As a global association spearheading professional standards, ethics and the development of highly trained industry talents, CFA Institute is committed to assisting China to develop a trustworthy, forward-thinking investment management profession that better serves society,” said LJ JIA, China Country Head of CFA Institute. “With our ‘Future of Finance’ initiative, we aim to shift the mindsets of organizations to use finance as a powerful force for good by putting the interests of investors first, investing in talent, and investing sustainably and responsibly.”

To help leaders navigate through these changes successfully while building trust and increasing the benefits to society, CFA Institute urges asset owners, asset managers and investment intermediaries to focus on these areas for the future:

• Professional transformation: Develop the mindset and practices by which the investment industry evolves into a professional status akin to law or even medicine.
• Fiduciary implementation: Master the meaning of fiduciary in a way that can be effectively implemented even with inherent trade-offs and conflicts.
• New skills for new circumstances: Develop new-era leadership. The industry’s biggest challenge is finding leadership who can articulate a compelling visio instill an ethical culture. Improving diversity is linked to better performance and culture.
• Stronger standards to restore industry trust: Specify and influence culture and practice with regard to values and costs. Create a culture and business model which align credibility and professionalism across a spectrum of critical attributes. Use the CFA Institute TRUST checklist: Transparency, Realistic measures, United values, Sustainable and fair rewards, and Time-tested relationships.

Other topics addressed at the “Future of Finance“ Forum in Beijing include the future of retirement and ESG investment in China, and global strategic trends including climate change, carbon pricing, and sustainable investment

Featured speakers of the conference also includes: Hua Yu, CFA, Chairman of Board, Morgan Stanley Huaxin Fund Management; Stuart Leckie, Chairman of Stirling Finance, Founding Chairman of Hong Kong Retirement Schemes Association; Paula DiPerna, CDP Special Advisor, former president of Chicago Climate Exchange International; Chaoni Huang, Head of Business Development, Trucost; Kyle Kung, Managing Director, Head of SSGX Innovation Lab, State Street; Charles Yang, CFA, Managing Director, Tokio Marine Asset Management, former chair of CFA Institute Board of Governors; Lei Shu, CFA, General Manager of Securitized Products Department, Ping An Trust Company.