Date: 19.04.16 Category: Ethics & Professionalism
It is commonly accepted that the investment profession delivers social value by enabling clients to invest – individually and collectively. If clients were unable to invest they would find it more difficult to protect and compound the wealth on which they will rely during and after their working lifetimes. The alternatives – reliance on bank savings (that now commonly fail to deliver a real return) or additional investment in property (that can be illiquid, is more difficult to diversify and is a relatively inefficient investment from a societal perspective) – are unattractive.
The profession does so in a dependable fashion and, increasingly, also recognises the need to invest in a way that will help to secure the broader social objectives that a client might have, such as limiting the damage caused by climate change or fair treatment of all in a supply chain. Stakeholders identify a number of ways in which investment professionals can add value.
Stakeholders note that none of these tasks are simple to perform and that each creates opportunities for conflicts of interest to arise. That such conflicts are identified and mitigated or avoided is critically important and is one of the primary reasons why investment should be seen as a professional activity operating at the highest standards of ethical and professional behaviour.
Read more in our report.