BlackRock Adopts CFA Institute Asset Manager Code of Professional Conduct

BlackRock, the world’s largest asset manager, has joined the ranks of more than 1,000 firms worldwide that claim compliance with the CFA Institute Asset Manager Code of Professional Conduct.

The Asset Manager Code of Professional Conduct clearly outlines the ethical and professional responsibilities of firms that manage assets on behalf of clients. For investors, the code provides a benchmark of ethical conduct they should expect from asset managers and offers a higher level of confidence in firms that adopt the code. Ariel Investments, Janus Capital Management, JP Morgan Asset Management, Loomis Sayles, Morgan Stanley Investment Management, Inc., TD Asset Management, and US Bancorp Asset Management are among the firms that claim compliance.

Says BlackRock’s Chief Operating Officer Rob Goldstein, “Investors deserve and should expect the highest level of professional conduct in the firms and individuals with whom they entrust their investments. Our clients entrust BlackRock to manage more assets than any other firm in the world, they are our number one priority. Adopting the Asset Manager Code of Professional Conduct is one more demonstration of our commitment to placing the needs and interests of our clients above all else.”

The Asset Manager Code of Professional Conduct is grounded in the ethical principles of CFA Institute and the CFA^® Program, and requires that managers commit to the following professional standards:

• 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

“Firms like BlackRock that actively demonstrate their integrity are the kind of industry leaders we need to advance the profession and shape a more trustworthy financial industry,” says Michael Trotsky, CFA, executive director and chief investment officer of the Massachusetts Pension Reserves Investment Management Board and member of the CFA Institute Board of Governors.

A champion for ethical behavior in investment markets, CFA Institute is working to build investor trust and promote transparency through:

• The Global Investment Performance Standards (GIPS), a set of industry-wide principles that guide investment firms on how to calculate and report their investment results to prospective clients. We encourage firms to voluntarily adopt these standards.
• Ethical Decision-Making Webinars, a free, highly interactive, case-based webinar series that provides participants with the framework to analyze situations from an ethics perspective.
• The “Integrity List: 50 Ways to Restore Trust in the Investment Industry” for actions to take to build trust and enhance your firm’s reputation.
• The Future of Finance project, a long-term global effort to shape a trustworthy, forward-thinking financial industry that better serves society.

Photo credit: AP Images

If you liked this post, consider subscribing to Market Integrity Insights.