The investment management profession meets most, but not all, of the criteria to qualify as a profession. In many countries, recognition by employers and regulators is below that of other established professions. Not everyone engaged in investment management is a professional – they have not undergone specific training or become members of a professional body.
As capital markets have grown around the world, the practice of investment management has become globalized. There is a need to establish common standards for professionals who serve multiple markets.
Clients expect a high level of expertise from their investment professionals, but are not usually aware of the conflicts, risks, and fees involved in their investment. Clear disclosure of such factors is necessary, and professionals must handle these issues in the best interest of their clients.
Highly trained investment professionals can help make capital allocation more efficient and less costly. When combined with helping clients meet their investment objectives, these factors allow the investment management profession to deliver more value to society.
This post addresses a learning outcome in “Ethics and Trust in the Investment Profession,” which is part of the curriculum for the CFA Program.