Asset Manager Code
In an interesting turn of events, the Securities and Exchange Board of India (SEBI) has announced that it needs to review its regulations that deal with front-running.
Following the big interest in last year’s CFA Institute Global Financial Market Sentiment Survey (GMSS), the results of the 2013 survey — shaped by input from the nearly 6,800 CFA charterholders worldwide — are sure to raise some eyebrows.
A recent publication by Muel Kaptein, partner at KPMG and professor in business ethics at Erasmus University’s Rotterdam School of Management, compiles insights from a wide range of research and experiments to explore why individuals are led astray from their ethical foundations.
Type “insider trading” into your favorite internet search engine and a virtually endless list of articles will appear. Stories cover countries and markets of all sizes. The trading on material nonpublic information is a longer-term phenomenon, to which regulators are steadily increasing their enforcement activities.
No one would argue with the premise that trust in those individuals and entities who manage investor assets is a fundamental element in any investor-adviser relationship. But how can investors gauge the integrity of the investment professionals and firms they are considering hiring? Are there objective measures of trust that can assist in determining which advisers are more likely to act ethically in the future?
In a recent interview with Emerging Manager Monthly, Bob Dannhauser, CFA, head of Standards of Practice and Outreach at CFA Institute, discusses the Asset Manager Code of Professional Conduct.
A recent "Institutional Investor" article suggests that cultural factors may help influence conflicts of interest between asset managers and owners, focusing on recent scandals in Japan. Glenn Doggett, CFA, examines the issue.
Renowned Yale economist and best-selling author Robert J. Shiller recently issued a simple but important call for college graduates headed for careers in finance: “… never lose sight of the purposes and overriding social goals of finance.”
Two recent studies offer conflicting views of hedge fund industry performance. Rhodri Preece, CFA, examines the research and offers key takeaways for investors.
In an op-ed in the "New York Times," former Goldman exec Greg Smith penned a scathing indictment of what he claimed was an eroding culture of integrity at his old firm. Jon Stokes examines the impact on the investment profession as a whole.
From issues of transparency to the suitability of investment advice, the Indian fund management industry is undertaking several initiatives to enhance investor protection in this nascent market.
The unfolding scandal in Tokyo involving pension investment management firm AIJ Investment Advisors Co. is depressingly predictable. Details are still emerging, but it appears that some $2.3 billion of client assets are unaccounted for. The pity is that it really doesn’t have to be this way.
One consequence of recent well-publicized frauds targeting even the most sophisticated of investors (think Madoff, Stanford, et al) is a sharper focus on investor due diligence review of asset managers. The old “Three Ps” (people, process, performance) have given way to increasingly expansive investigations of investment capabilities and the character of firms’ principals.
Following a tumultuous year for global capital markets that saw the longest-ever insider trading sentence and the Olympus Corp. accounting scandal, public trust in the financial services sector has taken another hit, according to the findings of the 2012 Edelman Trust Barometer.
A regulatory compliance program that is not centered on ethics and a strong ethical culture risks not being adequate or effective, according to Carlo V. di Florio, director of the U.S. SEC’s Office of Compliance Inspections and Examinations (OCIE). In a… READ MORE ›