Investment management professionals should be less focused on their employers’ profits and more on solving their clients’ problems, the head of the CFA Institute has said.Chief executive and president Paul Smith said both investment and asset managers should focus on providing client services rather than the overall success of the company.Smith, who has led the institute since January, said the investment industry also suffered from a lack of trust from the public, as “there is not enough focus on properly pricing products”, or on investor protection.“In the same way the main focus for doctors is their patient’s health, the goal of investment management professionals should be solving their clients’ problems, rather than maximising profits for their firms,” he said. The CFA Institute provides education for investment/asset managers and has drafted a code of ethics charter holders are told to adhere to when managing money for clients.“We need better-structured products and better incentives,” Smith said, adding that fee structures are skewed towards the interests of managers.He also believes the industry has failed to present itself correctly to regulators, and that this will drive more regulation for asset managers.“We have not set the bar high enough,” he said. “As a result, the drift of regulation is such that making money will become more difficult.”Smith did concede that if profit-making became harder for asset managers and the broader financial services industry, the pace of global economic growth may slow down.He also raised concerns about the image of the industry to graduates, as well as gender balance and diversity within the industry.The institute said it wanted to focus on bringing greater gender diversity into the industry in the long term, citing increasing evidence that diversity within asset management firms may be beneficial to end investors.The investment management industry, Smith added, is resisting modernisation and the introduction of technology overall. “Regulators should enable the adoption of technology,” he said.
COMMENT WATCH US LIVE Slovan Bratislava lost its appeal Friday against exclusion from the Champions League by UEFA after players tested positive for COVID-19 in pre-game checks.The Court of Arbitration for Sport upheld UEFA’s ruling last week that ordered the Slovakian champion to forfeit a first qualifying round game in the Faeroe Islands without playing.Public authorities in the Faeroe Islands put two different squads of Slovan’s players into quarantine when a virus infection in each group was reported in tests required by UEFA.The game was postponed twice, then UEFA’s appeal panel awarded Faeroes champion KI Klaksvik a 3-0 win to advance to the next round. Slovan later said all 35 players tested negative on returning to Slovakia.Friday’s urgent ruling from a CAS judge — without yet specifying reasons — was the second verdict Slovan lost there within 10 days.Last week, sport’s highest court dismissed Slovan’s request to postpone KI’s second qualifying round game hours before kickoff in Switzerland. KI lost 3-1 to Young Boys.Slovan is among three clubs to forfeit games in August in qualifying rounds for the Champions League or Europa League.UEFA’s updated club competition rules during the pandemic recognize local public authorities’ decision-making power over suspected COVID-19 cases involving players or club officials.Slovan and Drita, the champion of Kosovo, have transferred across to qualifying rounds in the second-tier Europa League where prize money is hundreds of thousands of euros (dollars) less. Slovan was drawn to play away to KuPS of Finland on Sept. 17.(Image Credit: AP) Associated Press Television News Last Updated: 4th September, 2020 22:47 IST Virus-hit Club Loses Appeal Against Champions League Ouster Slovan Bratislava lost its appeal Friday against exclusion from the Champions League by UEFA after players tested positive for COVID-19 in pre-game checks. LIVE TV First Published: 4th September, 2020 22:46 IST Written By SUBSCRIBE TO US FOLLOW US