CFA Societies Australia partners with super industry leaders in Open Letter Campaign to Asset Managers

Aims to raise standards of compliance in asset management industry by adopting Asset Code of Conduct

15 March 2018: Today, [six] of Australia’s leading superannuation funds expressed their support for higher ethical standards within the industry by signing CFA Societies Australia’s Open Letter (Letter), which asks managers to adhere to the standards set forth in the CFA Institute Asset Manager Code (Code)

Signatories of the Letter, Australian Ethical, AustralianSuper, First State Super, Kinetic Super, Sunsuper and VicSuper, want to raise awareness of ethical practice among investment professionals with the goal of better protecting the interests of superannuation members in Australia.

The Code outlines the ethical and professional responsibilities of asset managers, who manage assets on behalf of clients including superannuation members through their superannuation funds. By adopting and enforcing a code of conduct for their organisations, asset managers demonstrate their united commitment to ethical behaviour and the protection of investors’ interests with one common code, recognised and applied globally.

Several hundred firms around the world have already become signatories to the Code including some of the largest global asset managers and local firms. The Code states that managers have these responsibilities to their clients:

  • To act in a professional and ethical manner – at all times
  • To act for the benefit of clients
  • To act with independence and objectivity
  • To act with skill, competence and diligence
  • To communicate with clients in a timely and accurate manner
  • To uphold the rules governing capital markets

Mr Stephen Dunne, Chair CFA Societies Australia Advocacy Council, said a united show of support for these principles by a significant set of asset owners in Australia would spur managers to consider compliance with the Code for the ultimate benefit of investors.

“The Letter is especially relevant in Australia with its unique mandated superannuation system, which makes every single Australian an investor and creates an even greater moral imperative for asset managers to adopt the Code,” he said. “The Code is free of charge and represents industry best standards globally.”

In 2016, CFA launched the Letter in the United States and Canada, where it was published in the Wall St Journal and Pension and Investments in May 2016 and May 2017 respectively. Its signatories represented some of the largest asset owners in those countries with combined assets under management of nearly $ 1.9 trillion.

For further information, please contact:

Michaela Francis

Executive Director – CFA Society Sydney

Email: exec@cfas.org.au / Mobile: +61 404 264 636

 

About CFA Societies Australia

The CFA Societies of Sydney, Melbourne and Perth are not-for-profit associations of approximately 2,500 investment professionals; together representing the three Australian chapters of CFA Institute. Our members are engaged in a wide variety of roles across investment management and advice. Most of our members are holders of the Chartered Financial Analyst (CFA) designation. For more information, please visit https://www.cfas.org.au

About CFA Institute

CFA Institute is the global association of investment professionals that sets the standard for professional excellence and credentials. The organization is a champion for ethical behavior in investment markets and a respected source of knowledge in the global financial community. The end goal: to create an environment where investors’ interests come first, markets function at their best, and economies grow. CFA Institute has over 148,000 members in 163 countries and territories, including 142,000 CFA charterholders and 148-member societies. For more information, visit www.cfainstitute.org.