CFA Institute, the global association of investment management professionals, will recognize May as the third annual Putting Investors First Month. This annual month-long, global initiative focuses on promoting the needs and rights of investors with the end goal of uniting investment professionals in a commitment to place investor interests above all others.
Throughout the month of May, many of the organization’s 147 member societies worldwide will host local events and call attention to the needs and rights of investors by sharing the Statement of Investor Rights, a list of ten rights that any investor should expect from financial service providers. In addition, the organization will spotlight A Difference That Matters, a global advertising campaign, which features CFA charterholders from around the world and aims to build a better investment management profession by raising investors’ awareness of what makes CFA charterholders different.
“Putting the investor first is critically important because investing is, and always has been, deeply personal,” said Paul Smith, CFA, president and CEO, CFA Institute. “Behind every investment transaction, there is an individual whose hopes and dreams depend on this capital, whether it’s putting the kids through college, paying the mortgage, or saving for retirement. Investment is about people, and that focus is more important now than ever before. We have an incredible opportunity as an organization; our foundation is built upon placing the interests of our clients first, second, and last, and we must never forget this.”
Putting Investors First Month Aims to Create Impact by Encouraging Ethical Behavior
According to a recent report from CFA Institute, From Trust to Loyalty: A Global Survey of What Investors Want, we see that investor loyalty remains fragile showing that the need to put investors first is greater than ever. A central focus of Putting Investors First Month is the Statement of Investor Rights, which investment management professionals are encouraged to share with their clients and communities. 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. To complement the Statement, CFA Institute has produced Realize your Rights: Using the Statement of Investor Rights, which provides the questions and considerations that will allow investors to evaluate the ethical commitment of their financial service providers and to ensure that their interests come first.
“The CFA Institute community worldwide is committed to good stewardship, high ethical standards, and putting investors first,” continued Smith. “Through the Statement of Investor Rights we are educating investors on their rights to a service that puts their interests first. By supporting Putting Investors First Month, we want to inspire our community to make real impact and foster a market environment where investors can thrive.”
For more information about Putting Investors First Month, the Statement of Investor Rights, and From Trust to Loyalty: What Investors Want, visit www.cfainstitute.org.
Paul R. Rossi, CFA