By Etaarifa Contributor
The Chartered Financial Analyst Society East Africa (CFA Society East Africa) has today launched its Statement of Investor Rights at the Nairobi Securities Exchange; intended to help capital markets practitioners in Kenya put the interests of investors first.
The recent CFA Institute 2015 Global Market Sentiment Survey polled 5,250 global investment professionals and 63 percent of them pointed out lack of ethical culture within financial firms as the factor that contributes to mistrust in the financial industry.
CFA members also believe that better alignment of compensation with investor objectives (31%) and a zero-tolerance policy by top management for ethical breaches (27%) are the most needed firm- level actions in the coming year to improve investor trust and confidence.
Speaking at the Statement launch, CFA Society East Africa President Eleanor Kigen, says, “The CFA survey clearly shows that trust problems in the global capital markets industry stem more from flawed internal firm culture, rather than from poor government regulation and enforcement. Putting Investors First Month is part of the Future of Finance project, a long-term global effort to shape a trustworthy culture within the financial industry.”
This global campaign began in May 2014 with activities taking place in 58 cities by member societies – representing more than 60,000 investment professionals. CFA Society East Africa is marking this initiative for the first time since it was chartered in March 2014. The central focus of Putting Investors First Month 2015 is the Statement of Investor Rights, which financial professionals can endorse and share with their clients and communities; investors are also encouraged to read and endorse the Statement.
Mr Geoffrey Odundo CEO Nairobi Securities Exchange says: “The Statement is intended to help investors demand that financial professionals abide by these rights. 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.”
Throughout the month, many of the organization’s 144 member societies worldwide will host local events and call attention to the needs and rights of investors by endorsing the Statement of Investor Rights, a list of ten rights that any investor should expect from financial service providers.
Ms Eleanor Kigen President CFA Society East Africa says: “We aspire to build and lead the investment management profession; to do this we must continue to stand together for what is right, and in investors’ best interests. All investors have the right to be served by professionals who act as stewards of their savings.”