Move to raise investor confidence

Some of the biggest stakeholders in the financial sector here in Barbados recently took a major step in heightening the level on confidence investors can have in local asset management firms, with the introduction of an internationally known code of ethics.

The Chartered Financial Analyst (CFA) Society of Barbados, along with representatives from Royal Fidelity Merchant Bank, Sagicor Life Insurance and Fortress Fund Managers, signed and officially adopted the international CFA Asset Manager Code during a brief press conference at the Financial Services Commission offices in Bridgetown.

The code, which clearly outlines the ethical and professional responsibilities asset managers owe to their clients, seeks to provide a base standard and supportive structure for managers to follow while they carry out their various tasks.

In speaking during the signing of the code, CEO of the Financial Services Commission (FSC) here in Barbados, Kester Guy, welcomed the initiative from the local chapter of the CFA, and expressed his pleasure in seeing local asset managers take the important steps towards supporting integrity in the sector.

“I believe this is a very important undertaking and initiative that was generated by key stakeholders, and we fully endorse this type of operation, where asset managers are holding themselves accountable to a particular code, behaviour, and context.

“We are happy that our asset managers go the extra step to provide a level of transparency, honesty, and commitment to standards highest integrity, and for that we are particularly pleased,” Guy said.

This recent introduction by the CFA of this code of ethics for asset managers is a welcome move from the FSC’s standpoint as it comes on the heels of two
important areas in which the FSC has had much concern about for some time.

“The FSC is particularly concerned with two key pillars of regulation; one is investor protection, and the other remains systemic risk.

“The mutual fund sector for instance accounts for two billion dollars in Barbados, and if you add other asset management portfolios that number probably doubles or triples if you include some of the other international business management activities that asset managers have broad purviews over.

“These persons are critical because they are responsible for investing your funds that you place in various institutions and schemes, and everyone wants to know at the end of the day that there is some return on their investment,” he added.