Investors ideally ought to be able to take comfort in their asset managers’ duty of best execution, a fiduciary obligation that affords investors some measure of protection and assurance. Unfortunately, best execution is often invoked but rarely understood and frequently misinterpreted.
Does the financial services field constitute a profession? Are its practitioners more prone to ethical lapses than those in other sectors? Does it contribute to inequality? In this provocative interview, Cambridge University professor John Hendry, author of Ethics and Finance: An Introduction, offers some startling answers and considers ways to make financial services more ethical.
Companies may better serve society by bringing corporate purpose, as expressed in authentic branding and mission statements, into alignment with business actions.
In case you missed it, this year at the 67th CFA Institute Annual Conference in Seattle, Carl Richards discussed what could be done to improve the investment industry.
Ethical behavior is influenced by many factors that you may not have considered. In essence, behaving ethically requires more than knowing right from wrong: it primarily involves keeping an ethical mindset and being aware of potential problems.
The combination of the financial crisis, events like the Libor scandal, and frequent news stories about financial organizations putting their interests above their clients, it is obvious why some investors may be concerned about the quality of advice and the motivations of their financial service providers.
Five years after the global financial crisis washed over us all, the future of finance is unclear. The debate continues over how to rebuild a financial system that is vibrant and dynamic, that serves society, and that won’t blow up and drag the whole world down every few years. From my perspective, a new era of capitalism is emerging out of the fog. What I define as fiduciary capitalism is gathering strength and needs to become the future of finance.
According to author Larry Doyle, the financial crisis of 2008–2009 was a failure of regulation and oversight, and he contends that the leaders of major institutions escaped retribution for irresponsible practices that helped cause the crisis. He calls for enhanced accountability and effectiveness in the regulatory arena.
The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.