CFA Institute Taps Leading Economist John Kay to Lead Future of Finance Project, Unveils Statement of Investor Rights

CFA Institute Taps Leading Economist 

John Kay to Lead Future of Finance 

Project, Unveils Statement of Investor 

Rights

Long-term effort aims to shape a more trustworthy financial industry

[Mumbai], March 19, 2013 – CFA Institute and a team of prominent financial industry leaders including Advisory Council Chair John Kay have launched the Future of Finance project, a long-term global effort to shape a trustworthy, forward-thinking financial industry that better serves society. The project aims to provide the tools to motivate and empower the world of finance to commit to fairness, improved understanding, and personal integrity. Led by Kay, the advisory council is comprised of a diverse group of experts from finance, education and media. To learn more about the project and find ways to participate, visit www.cfainstitute.org/FutureFinance.  

“The global financial industry can be an extraordinary force for good, but there is much work to be done to shape the industry for future generations,” said Kay, chair of the Future of Finance Advisory Council. “This project is designed to engage professionals and investors in and outside of finance to help solve problems with the global financial system. We can affect positive change in finance, but change starts with all of us – industry leaders, financial professionals, government agencies, financial regulators and the public. It’s an ambitious project that aims not just to gather the best ideas, but to make them a reality.”

Statement of Investor Rights Helps Investors Demand Ethical Behavior

As a first step, the Future of Finance project has unveiled the Statement of Investor Rights , a list of principles intended to help buyers of financial service products demand the conduct they are entitled to expect from financial service providers. The list applies to financial products and services such as investment management, research and advice, personal banking, even insurance and real estate, and is intended to help investors demand that financial professionals abide by these rights. The document includes rights that investors are entitled to expect such as objective advice, disclosure of conflicts of interest, and fair and reasonable fees.

“The Statement of Investor Rights emphasizes the concept that the investor must always come first, and lays a solid foundation for this project. Our plans are lofty as we develop events, publications and significant research-based tools to reinforce the need for ethical conduct and professional practice to restore trust and confidence in finance,” said John Rogers, CEO and president of CFA Institute. “The Future of Finance project is a critical way for us to encourage thought leadership and engagement, as we seek to shape a more forward-thinking industry. CFA Institute is in a unique position to lead this effort, promoting the highest standards of ethics, education and professional excellence for the ultimate benefit of society.”

Project Tackles Key Issues and Challenges in Finance

The Future of Finance project is focused on six primary topics of interest for all who rely on finance, including putting investors first; safeguarding the system; retirement security; financial knowledge; regulation and enforcement; and transparency and fairness. The project plans rigorous research and recommendations to address each area, and will produce accessible tools to encourage broad adoption and widespread change throughout the global financial system. To read more about these topics and learn how to take action, visit www.cfainstitute.org/FutureFinance.

The advisory council will issue a call to action on May 20 at the CFA Institute Annual Conference in Singapore, detailing the objectives and future plans for the Future of Finance project. The call to action will include an overview of the primary problems with finance, and how the project will tackle those problems.

Initial members of the Future of Finance Advisory Council are:

Chair

John Kay, Economist and Author

Members

• Keith Ambachtsheer, Director, Rotman International Centre for Pension Management, Rotman School of Management, University of Toronto
• Paul Chow, Former Chief Executive, Hong Kong Exchanges and Clearing Limited
• Elizabeth Corley, CEO, Allianz Global Investors
•  Tom Keene, CFA, Editor-at-Large, Bloomberg News
•  Ira M. Millstein, Senior Partner, Weil, Gotshal & Manges LLP and Co-Chair of the Millstein Center for Global Markets and Corporate Ownership, Columbia Law School
•  Saker Nusseibeh, CEO and Head of Investment, Hermes Fund Managers
• Robert C. Pozen, Senior lecturer, Harvard Business School and senior fellow, Brookings Institution

About CFA Institute

CFA Institute is the global association of investment professionals that sets the standard for professional excellence and credentials. The organization is a champion for ethical behavior in investment markets and a respected source of knowledge in the global financial community. The end goal: to create an environment where investors’ interests come first, markets function at their best, and economies grow. CFA Institute has more than 114,000 members in 137 countries and territories, including 106,756 CFA charterholders, and 138 member societies.