CFA Societies Australia focuses on investors’ rights at a crucial time for financial services industry

CFA Societies Australia will be highlighting the importance of putting investors’ interests first during its upcoming Investor First Week from 12 – 16 May.

Investor First Week is part of CFA Institute’s global Future of Finance initiative, a long-term effort to shape a trustworthy, forward-thinking financial industry that better serves society. The initiative aims to provide the tools to motivate and empower the world of finance to commit to fairness, improved understanding, and personal integrity. Sydney, Melbourne, Perth and Auckland will join more than 50 cities around the world, where CFA societies representing more than 35,000 investment professionals will mark the global initiative during May.

During Investor First Week, CFA Societies Australia will be focusing on several constructive initiatives in the Australian market to improve standards and safeguard investors’ rights, including a code of conduct for asset managers, and a statement of investor rights.

Anthony Serhan, Managing Director, Research Strategy, Asia-Pacific at Morningstar and Vice President of CFA Society of Sydney, said, “Investor First Week is about emphasising that all participants in the financial sector, globally and in Australia, should put investors first – a prerequisite for improving investors’ trust in the financial system.

“More focus on ethical principles and standards is essential across the financial services industry to regain the trust of investors, particularly in the provision of advice.

“At a time when the concepts of best interest and reasonable basis have been hotly debated in the context of the Future of Financial Advice reforms in Australia, Investor First Week highlights the need for the industry as a whole to hold up both of these principles.

“A fully functioning and efficient market is built on trust. Clients rely on advisers, advisers rely on analysts and asset managers and they, in turn, rely on issuers of securities. A lack of confidence in any one area can have a meaningful impact on others. That is why the principles attached to the Future of Finance remain an important backbone of the industry fabric.” Mr Serhan said.

To help launch Investor First Week, Michael Woodford, Former President and CEO of the Olympus Corporation will speak to CFA members and the investment community in Australia next week about the importance of governance and ethical principles.

Mr Woodford, a 30-year veteran of Olympus, discovered a $1.7 billion accounting fraud after taking over the CEO role. Olympus corporate executives were hiding huge investment losses through complex takeover deals. Mr Woodford immediately blew the whistle on the scandal and was fired in October 2011. He has since published a book on the matter.