CFA Institute, the global association of investment professionals that sets the standard for professional excellence, is using its second annual ‘Putting Investors First’ (PIF) month to highlight the impact of Australia’s mandated superannuation, which creates a unique financial system where every worker is an investor.
According to CFA Institute, this unique financial system puts greater emphasis on the need for ethical behaviour and doing the right thing by investors. It says more should also be done to build awareness among Australian consumers and to help them understand that their interests should be placed above all others.
CFA Institute is using its PIF month to bring investment professionals together to show such commitment to placing investor interests first, with the Australian CFA societies hosting relevant events throughout May.
Mr Anthony Serhan, President of CFA Society Sydney, said “Mandated superannuation makes Australia a different playing field compared with its global counterparts where private investment is paramount. Ultimately, it can mean financial advice has a greater impact on investors here.”
“Private investors often manage their own wealth and are more sophisticated investors in their own right. They tend to be less dependent on financial advice compared to those who are less aware of what is happening with their finances. And when it comes to superannuation, we know a number of Australians need a better understanding of where and how their money is invested.
“It is our aim to continue the debate in Australia and protect the interests of investors above all else, by instilling high standards of ethics and professionalism in industry executives and firms from the outset,” Mr Serhan said.
One of the major issues when it comes to the relationship between investors and financial advisers is the extent to which their interests are aligned because of conflicted remuneration models and product integration.
“The major legislative reforms currently underway will make significant strides for our profession, however we need a multi-layered approach that instils ethical culture throughout the industry.”
CFA Institute aims to do more than prepare and educate professionals by building partnerships with institutions to raise standards of practice at all levels of the industry.
In light of this, CFA Institute is urging companies to sign the Statement of Investor Rights, a ten point document highlighting what consumers should expect from a financial planner such as objective advice, disclosure of conflicts of interest, and fair and reasonable fees. The Statement is intended to help investors demand that financial professionals abide by these rights.
“By demanding that financial professionals abide by these principles we are building investor trust and ensuring integrity in investment professionals,” said Mr Serhan.
‘Putting Investors First Month’ is part of the CFA Institute Future of Finance initiative, a global effort to shape a trustworthy, forward-thinking financial industry that better serves society.
For more information about the ‘Future of Finance’, ‘Putting Investors First’ month and the ‘Statement of Investor Rights’, please visit www.cfainstitute.org.
CFA Societies of Australia will be running numerous events throughout May including conference focusing on long-term investing in Sydney on 26 May, and events featuring Mr Tony Neoh aimed at industry leaders, employers and charter holders between 19 and 26 May in Melbourne and Perth.
Source: CFA Institute
