Markets May Be Up, But Trust Is Still an Issue, Says CFA Institute President and CEO John Rogers, CFA (Video)
“Why don’t we feel better that the markets are up this year?” asked John Rogers, CFA, president and CEO of CFA Institute, in an appearance earlier today on Bloomberg TV. The answer: “It’s because ethics matter.”
Citing the recently released CFA Institute Global Market Sentiment Survey, Rogers noted that 56% of the investment professionals surveyed identified a continuing lack of ethical culture within financial firms as the major factor contributing to the current lack of trust in the industry.
Responding to a question from Barry Ritholtz as to whether other factors might be keeping retail investors out of the market, Rogers responded, “In any profession ethics are the foundation of trust, and when ethics go out the window and the public does not trust finance, we see this kind of defensive investment posture on the part of people who should be out there saving for the long term.” The resulting savings and retirement gap will inevitably lead to social problems, Rogers said.
In the interview, Ritholtz and Rogers touched on the fiduciary standard versus suitability and discussed other challenges that the financial industry must confront to restore trust. Rogers also highlighted the growth of the CFA Program in Asia. Watch the full interview above, or for more detailed analysis on the state of ethics in finance, see the Global Market Sentiment Survey.
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