Role of industry bodies in building community trust questioned
Colonial First State Global Asset Management chief executive Mark Lazberger has questioned the role key financial services associations play in building community trust in the asset management sector in comparison with accountancy body the CFA Institute.
Lazberger said the CFA Institute could be differentiated from other financial services industry bodies by the exacting education requirements placed on its members and by the focus on ethics and professional standards within this education.
“An individual has to sit a series of very demanding exams over a minimum three-year period in order to become a CFA and is required to adhere to a strict code of ethics and standard of professional conduct."
Also a member of the CFA Sydney Employer Advisory Board, Lazberger said the code of ethics, in place since 1962, was sustainable through all stages of the cycle, and required its members to conduct themselves accordingly.
He said in contrast, “Most industry bodies that purport to represent the industry don’t have these (educational and ethical) requirements for its members, although he acknowledged that industry bodies do have a role in building trust".
“Industry bodies are fine, they serve a purpose, but they run the risk of being nothing more than lobbying associations that are designed to represent certain groups."
Recommended for you
A financial advice firm has been penalised $11 million in the Federal Court for providing ‘cookie cutter advice’ to its clients and breaching conflicted remuneration rules.
Insignia Financial has experienced total quarterly net outflows of $1.8 billion as a result of client rebalancing, while its multi-asset flows halved from the prior quarter.
Prime Financial is looking to shed its “sleeping giant” reputation with larger M&A transactions going forward, having agreed to acquire research firm Lincoln Indicators.
An affiliate of Pinnacle Investment Management has expanded its reach with a London office as the fund manager seeks to grow its overseas distribution into the UK and Europe.
