CompaniesMay 2 2013

Poll reveals challenges for ethical investment

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ByIona Bain

According to the poll of investment professionals, dealing with conflicts of interest was also a big ethical challenge.

The survey found that 58.8 per cent of investment professionals said integrity of capital markets proved the most difficult area to uphold within the code of ethics and standards of professional conduct.

A similar number, 57.7 per cent, cited duties to clients as the most challenging element for them, while more than a third cited investment analysis.

The poll also found that advisers would welcome more practical guidance from CFA UK, and its global parent the CFA Institute, on these aspects.

Will Goodhart, chief executive of the CFA Society, said: “Investment is a profession, not a business. We owe a duty of care to our clients. Ethical and professional behaviour is a requirement of CFA UK and CFA Institute membership.

“We believe it is a requirement of any professional working in investment and we will continue working hard to promote and support such behaviour.”

Adviser View

Anna Sofat, director of London-based Addidi Wealth, said: “The framework of your business should be totally client-centric and focused on good outcomes, and profits shouldn’t be put first. But not all financial firms have that. The well-documented problems that have occurred at some of the large organisations and high street banks suggest a lack of moral compass.”