Lack of Ethical Culture At Financial Firms Is The Biggest Reason For Lack Of Trust In Industry

From the Wall Street Journal Risk and Compliance Journal
By Ben Dipietro
“A survey of 5,259 investment professionals by the CFA Institute found 63% saying the lack of ethical culture at financial firms is the biggest reason for the lack of trust in the industry. That is nearly four times greater than the second answer, poor government and regulation, which represented 16% of the results. Thirty-five percent of respondents said political risks are the most underestimated risk that could have a negative impact on global capital markets over the next five years.

The survey found 31% saying better alignment of compensation with investor objectives is the most-needed action by a financial firm to improve investor trust and confidence, followed by 27% saying a zero-tolerance policy for ethical lapses. CFA said these results are in line with the results of an earlier report in which it ‘flagged continued dissonance between high ethical standards and managerial career progression.’”

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